Day 2 – Tax Tips for Homeowners
Posted by Bincy Jacob
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Do you have a lot of paper in your house and are unsure of which ones to keep and which ones to throw away? Here are some tips from the experts:
| HOME SALE RECORDS | |
| Document | How Long to Keep It |
| Home sale closing documents, including HUD-1 settlement sheet | As long as you own the property + 3 years |
| Deed to the house | As long as you own the property |
| Builder’s warranty or service contract for new home | Until the warranty period ends |
| Community/condo association covenants, codes, restrictions (CC&Rs) | As long as you own the property |
| Receipts for capital improvements | As long as you own the property + 3 years |
| Section 1031 (like-kind exchange) sale records for both your old and new properties, including HUD-1 settlement sheet | As long as you own the property + 3 years |
| Mortgage payoff statements (certificate of satisfaction or lien release) | Forever, just in case a lender says, “Hey, you still owe money.” |
| ANNUAL TAX DEDUCTIONS | |
| Document | How Long to Keep It |
| Property tax payment (tax bill + canceled check or bank statement showing check was cashed) | 3 years after the due date of the return showing the deduction |
| Year-end mortgage statements | 3 years after the due date of the return showing the deduction |
| PMI payment (monthly bills + canceled check or bank statements showing check was cashed) | 3 years after the due date of the return showing the deduction |
| Residential energy tax credit* receipts | 3 years after the due date of the return on which the credit is claimed (including carryforwards**) |
Click here for the full article and more tips on document retention.
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Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the HRIS.
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