What tax records do I need to keep and for how long?

The best way to organize your documents is to keep a file for each tax year. Each file should contain your tax filing documents along with the income and payment forms that you received from various employers. In addition to these documents, any information concerning large purchases that would be considered capital gains such as cars, furniture, home improvements, and artwork should all be kept. Also, a summary statement of your financial portfolio and any trust summaries should be kept on file for each year. If there are any documents that you are unsure about, look over your old tax returns to see if the information is specifically listed. If it is, the documents should be kept. 

To save room, you can scan the documents onto your computer and save them in an electronic file. This will ensure all documents are saved and easily accessible. Consider creating a backup disc or using backup hardware such as an external hard drive.  

If you have further questions about keeping your income tax returns and tax records, get in touch with an attorney.