TSBAS Accounting Bookkeeping Payroll Tax Preparation
  • Home
  • Blog
  • Learn More
    • About >
      • Meet the Team
      • Reviews
    • Services >
      • Tax Debt Relief
      • Accounting & Bookkeeping
      • Tax Services
      • Payroll Services
      • Seminars & Training
      • QuickBooks Services
      • Specialized Services >
        • Spa Bookkeeping
        • Services for Real Estate Agents
  • Schedule
  • Contact Us
  • TSBAS Client Guide
  • Service Requests
    • Payroll Service Quote Request
  • Links to Important Things
  • careers
  • Home
  • Blog
  • Learn More
    • About >
      • Meet the Team
      • Reviews
    • Services >
      • Tax Debt Relief
      • Accounting & Bookkeeping
      • Tax Services
      • Payroll Services
      • Seminars & Training
      • QuickBooks Services
      • Specialized Services >
        • Spa Bookkeeping
        • Services for Real Estate Agents
  • Schedule
  • Contact Us
  • TSBAS Client Guide
  • Service Requests
    • Payroll Service Quote Request
  • Links to Important Things
  • careers

Keeping Yourself Free and Clear

5/26/2017

0 Comments

 
The other day, the New York Times ran a story that spoke to one of my favorite topics: keeping our minds clear.

The subject was the seemingly endless barrage of news stories about the current administration, and the challenges of navigating your mind to be free of it all.

Whomever you voted for, whatever your political persuasion (and I'm making a point here that transcends politics, however fascinating or dire they might be at the moment) -- perhaps one of our greatest challenges in this cultural moment is retaining our focus on what truly makes our hearts come alive.

I'm not suggesting that you keep your head in the sand -- but that you be mindful of what you're feeding your mind upon. 

Because right now, the world is SWIMMING in negativity. And you need to be serious and proactive about protecting yourself from it. Because -- if you don't -- it'll kill your career, kill your business, kill your dreams and everything you really care about.

The mass news media is NOT your friend. Neither are these ever-increasing niche-oriented outlets who yell with (and at) their particular choirs and point out the massive failures of "the other side".

They feed on fear, and they sell paranoia, division and hyperbole. It's what they do.
And not only must you protect YOURSELF from this drip, drip, drip of chaos and depression, you need to fight it on behalf of your co-workers, your friends and (especially) your children and family.

Now then. Let's move to something a little lighter -- and more oriented around what you can actually control: your finances, specifically your financial records.

So, speaking of keeping ourselves clear...

Nicole Odeh's 
"Real World" Personal Strategy Note
Odeh's Guide To Keeping Records
"Our lives are frittered away by detail; simplify, simplify." -Henry David Thoreau

With spring in full swing, let's apply those cleaning instincts to our financial world one of these days, shall we? 

This is a guide I send out every so often, because even in the days of cloud document storage, it's important to have hard copies lying around -- in a safe place, of course. If you don't have a full safe, these are the sort of documents for which you may want to invest in a fire safe, at least.

But here is what you should consider for how long to keep them ... and which ones you can safely trash.

Taxes: Seven years
Odeh's Reasons Why:
There are three, actually:

1) The IRS has three years from your filing date to audit your return if it suspects good-faith errors.
2)  The three-year deadline also applies if you'd like to make some sort of amendment because you discover a mistake in your return and can claim a refund.
3)  The IRS has six years to challenge your return if it thinks you under-reported your gross income.

All this adds up to keeping that info for seven years. Beyond that, there's no reason -- except for posterity.

IRA contribution records: Permanently
Odeh's Reasons Why:
You'll need to be able to prove that you already paid tax on this money when the time comes to withdraw.

Bank records: Usually just one year
Odeh's Reasons Why:
Those related to your taxes, business expenses, home improvements and mortgage payments will obviously need to be included for next year's taxes. But unless there is some sort of emotional or posterity reason, get rid of everything after one year.

Brokerage statements: Until you sell
Odeh's Reasons Why:
To prove whether or not you have a capital gain or loss for tax purposes; after this point, shred it.

Household bills: From one year to permanently
Odeh's Reasons Why:
When the canceled check from a paid bill has been returned, you can shred the bill with a clear conscience. However, bills for big purchases -- such as jewelry, rugs, appliances, antiques, cars, collectibles, furniture, computers, etc. -- should be kept in an insurance file for proof of their value in the event of loss or damage.

Credit card receipts and statements: 45 days/Seven years
Odeh's Reasons Why:
Some families don't even bother to match up their statements, but if you do so, shred the receipts once you've verified everything. There's no reason to keep everyday receipts beyond this point. For tax-related purchases, you need only keep the statements for seven years -- after that, shred it, baby!

Paycheck stubs: One year
Odeh's Reasons Why:
This is to verify that when you receive your annual W-2 form from your employer, the information from your stubs match. If so, shred all of the stubs ... if not, request a corrected form, known as a W-2c. After that's been handled -- shred.

House/condominium records: Six years/permanently
Odeh's Reasons Why:
You'll want to keep all records documenting the purchase price and the cost of permanent improvements -- such as remodeling, additions and installations as well as records of expenses incurred in selling and buying the property, such as legal fees and your real estate agent's commission, for six years after you sell your home.

Holding on to these records is important because any improvements you make on your house, as well as expenses in selling it, are added to the original purchase price or cost basis. Therefore, you lower your capital gains tax when you sell your house. ​

To ensure we don't make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

0 Comments



Leave a Reply.

    Archives

    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017

    RSS Feed

    Categories

    All
    Balance
    Bookkeeping
    Business
    Payroll
    Tax
    Tax Prep
    Tax Return
    Tax Scam

    View my profile on LinkedIn
Website by Odeh Media Group
Copyright ©2025 TSBAS.com, All Rights Reserved
The Small Business Accounting Solution, Inc
50 South 1st Avenue, Coatesville PA 19320
(844) 208-2937
Privacy Policy
​Contact Us
Terms & Conditions