Posted by Julie Signore on May 21, 1999 at 17:10:50:
In Reply to: Organizing Papers posted by Kacey on May 06, 1999 at 03:54:46:
Aloha Kacey,
Appreciate your kind words!!
Now a word on saving papers. "MANY" people save *everything* because they do not know the precise statutes for retention. My tax accountant recommends 3 yr retention. In some cases you need more time. In the case of a 1031 -- whatever is related to the original 1031 & is tied to another will need to be kept for 7 yrs after the sale of the last one. Hence one could feasibly have to save "sertain" papers much longer.
The following is the recommendations of a CPA. Please talk to your tax preparer & seek 2nd opinions in order to be prepared "in case" :)
Record Retention Guidelines
Item: Retention Period:
Canceled checks ............7 years
Credit card receipts ............7 years
Paid invoices ............7 years
Bank deposit slips ............7 years
Bank statements. ............7 years
Tax returns (uncomplicated) ............7 years
Tax returns (all others) ............Permanent
Employment tax returns ............7 years
Expense records ............7 years
Financial statements ............Permanent
Contracts ............Permanent
Minutes of meetings ............Life of company, plus 7 years
Corporate stock records ............Permanent
Employee records ............Period of employment + 7 years
Depreciation schedules ............Life of assets + 7 years
Real estate records ............Ownership period + 7 years
Journal & General ledgers ............Life of business + 7 years
Inventory records ............7 years
Home Improvement records .............Ownership period + 7 years
Investment records .............Ownership period + 7 years
One exception is that *anything* that might be needed to prove basis for your heirs after your death should be kept PERMANENTLY.
Kacey, keep in mind that these papers are "archive" papers. I do not recommend utilizing space directly in the office for "old stuff" Get yourself some bankers boxes. Label all 5 sides & stack them in order in a very unobtrusive space.
Good luck! & Hope this helps.
Much Aloha,
Julie Signore - CEO
1,2,3 SORT IT Organizing Solutions -- Innovative Tools
NSA Member, NAPO Member