| What to keep and how long to keep it Tax
records should be kept on a year-round basis, not hastily assembled just for your annual
tax appointment. Without tax records, you can lose valuable deductions by forgetting them
on your tax return, or you may have unsubstantiated items disallowed if you are audited.
Generally, returns can be audited for up to three years after filing.
However, the ATO may audit for up to five years if there is substantial unreported income.
The three and five year limits start with the filing of a tax return.
Which records are important?
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Records of income received. |
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Expense items, especially work-related. |
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Investment purchases and sales information. |
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The documents for inherited property. |
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Medical expenses. |
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Charitable contributions (records vary with value of gift). |
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Interest and taxes paid. |
How long should records be kept?
Just how long you should keep records is partly a matter of judgment and
a statutes of limitations. It is a good idea to keep most records for seven years after the return filing
date.
There are some records worth keeping permanently, partly due to long-term
needs and partly because they take up very little room. Consider permanently retaining a
copy of each year's tax return, contracts, real estate buy/sell records and records of
property improvements.
If you are in business, your record requirements are more extensive.
Please call us; we will be happy to assist you with a system of record retention for your
business.
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A&A Financial Services provides quality Accounting, Bookkeeping, Business Advisory and Taxation services to clients in Cabramatta, Casula, Chipping Norton, Denham Court, Hammondville, Harris Park, Holsworthy, Horningsea Park, Hoxton Park, Parramatta, Preston, Glenfield, Green Valley, Ingleburn, Liverpool, Lurnea, Macquarie Links, Macquarie Fields, Minto, Moorebank, Mt Pritchard, North Parramatta, Northmead, Wattle Grove, Warwick Farm, Westmead, North Rocks and other suburbs of South West Sydney, NSW |
