Records Retention

A frequently asked questions is 'How Long Must
I keep certain records?'. The following are
guidlines for keeping records and paperwork.

1. Checks and bank statements should be
retained for 20 years.

2. Records, documents, paperwork and bills
that relate to investments that you have should
be retained until the investment is sold and then
further retained for 3 years.

3. Payroll records should be retained for three
years.

4. Contracts, leases, agreements, etc. should
be retained for 6 years after the termination of
the agreement, lease, etc.

5. Business bills, paperwork, receipts should be
retained for at least three years.

6. Deposit slips may be destroyed after
verification that the related deposits have been
entered by the bank. Checkbook stubs can be
destroyed after 1 year provided they do not
contain other information which may be needed
as a general business records under paragraph
4 above.

7. Stocks and bonds - retain buy slips until
stocks are sold and then for three years
thereafter.

8. Brokerage statements - hold monthly
statements until quarterly are received. Hold
quarterly until year end statements are
received and then hold yearly for three years.

9. Real Estate closing statements,
improvement paperwork and capital
expenditures should be retained until real
estate property is sold and then for three years
thereafter. Unless the sale is part of a 1031 tax
free exchange in which case the paperwork
must be kept until the 1031 exchange property
is disposed of and then again for another three
years.

10. Tax returns should be saved for a minimum

of 6 years along with the attached W2s.