how long should I keep receipts?

The odds of an IRS audit are low for most people (though higher for people with higher income, self-employed, people in business that involve a lot of cash, etc.). But, the IRS has up to three years to audit your return (or longer in the case of fraud). So it makes sense to keep any records you might need to support your return at least three years.

For capital assets -- like a house -- you may need to keep records much longer, because you have to report gain (and maybe loss if it's a business asset) on the asset when you sell it, and the calculation depends on original cost, how much money you've put into it since, any depreciation you've taken over the years (if you use part of the house for business or rental, for example), etc.

snipped-for-privacy@sbcglobal.net wrote:

You're best off contacting a tax professional, who can tailor an answer to your own personal needs.

A newsgroup, such as this, is *NOT* a good place to come to, for legal advice.

Notan

Ok, thanks for the advice as it relates to the IRS. Over and done with, won't ask for tax advice in this forum anymore.

However, I'm really more looking for practical advice, just from those who actually use Quicken, and are thus more serious about their finances in general. My question is - at what point, personally, does the cost of keeping receipts outweigh the benefit? Do most users keep them sorted by payee/vendor? Is there a better way? Do people file their health receipts with their insurance EOB's? I'm looking for one or two specific tips in order to tame the paper tiger. Thanks again for the responses !

I keep all income tax related receipts for 3 years after I file the return or 4/15 whichever is later. I do not sort them other than into tax catagories to complete my return (waste of time) I just put them all in an envelope with my income tax return. As mentioned above, anything related to an asset that I still hold (house, stocks, bonds, etc.) I keep until I dispose of that asset. For all other receipts, (credit cards, checking, etc.) I keep for until January of the second year, ie. I will throw out all 2004 in January of 2007 to insure that I have receipts for my warranites.

H> Ok, thanks for the advice as it relates to the IRS. Over and done

I keep all income tax related receipts for 3 years after I file the return or 4/15 whichever is later. I do not sort them other than into tax catagories to complete my return (waste of time) I just put them all in an envelope with my income tax return. As mentioned above, anything related to an asset that I still hold (house, stocks, bonds, etc.) I keep until I dispose of that asset. For all other receipts, (credit cards, checking, etc.) I keep for until January of the second year, ie. I will throw out all 2004 in January of 2007 to insure that I have receipts for my warranites.

H> Ok, thanks for the advice as it relates to the IRS. Over and done

I keep receipts just long enough to get them into Pocket Quicken, thereafter they are tossed.

Except, of course, ATM receipts with a high balance exposed on them. I also dive into the trash there at the ATM machine. Chances that a stupid but hot broad will call you back when you give them your number on an ATM receipt with a high balance are high! ;-)