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Maintaining certain financial records indefinitely can safeguard against future tax disputes, facilitate asset management and ensure compliance.
General tax return documents should be kept at least three years, Stranger said.
These documents serve as a historical record of an individuals income, deductions and tax payments.
This can cause a loss or reduction in allowed deductions, and you could end up owing taxes.
DiSanto explained, That inevitably comes into play when you sell the property.
Youre going to calculate your capital gains tax.
This includes documents detailing contributions, rollovers and distributions.
These documents are essential for tracking tax-deferred contributions and required minimum distributions, ensuring compliance with IRS regulations.
He explained that doing so ensures that all of ones transactions in a given year are validated.
Put it in the same folder with all of those documents and just keep it, DiSanto said.
It doesnt take up much space anymore.
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