Comments on: How Long Do You Need To Keep Tax Documents?

By: Skit

Skit — Sun, 19 Jul 2009 03:39:49 +0000

Any Lifehacker readers have a recommendation on Records Management software for the Home user?
Something to keep track of those electronic documents.

Email should be fairly handy, as could Google Docs.

By: Philip Steinke

Philip Steinke — Sun, 28 Jun 2009 13:29:29 +0000

If your going to use the space method my accountant recommended writing the amounts and what the receipts are for (eg taxi $9.50) on the outside of the folder / a piece of paper to make tax-time easier.

Though the electronic format looks hella attractive right now.

By: Craig Muldoon

Craig Muldoon — Thu, 25 Jun 2009 09:14:56 +0000

Good to see the clarification of the $300 general rule. I ‘guess’ with my deductions and to know that it’s cool as long as it doesn’t exceed the $300 then i’m happy enough. I really haven’t earnt enough to worry about keeping a paper trail – although may need to do so for this upcoming financial year :(

By: Angus Kidman

Angus Kidman — Thu, 25 Jun 2009 03:56:05 +0000

But what that all amounts to in practice is “five years after the documents were relevant for a notice of assessment”.

By: Blake Thompson

Blake Thompson — Thu, 25 Jun 2009 03:30:27 +0000

Its a bit more than just 5 years from the Notice of Assessment(NofA) – which is generally the right time.

If you have a rental property or a property that has at any point been used to produce income you need the purchase documents from when you bought it. As well as any substantiating records you build up along the way e.g. if you claimed depreciation on any assets. You would need to keep those for 5 years from the NofA in the year you sold it.

Same goes for shares you need the original purchase contracts, plus if you had reinvested dividends (DRP) you need all those records from 5 years after the NofA in the year you sold them.

But wait there is more, if you made a business loss, tax loss or capital loss you need to keep records to support that for 5 years AFTER you have used up the loss.

So if you bought shares in 1990, and sold them for a loss in 2000, but didn’t use up the capital losses till 2009, you would need to keep the original 1990 records from 5 years after you get the NofA for your 2009 return ~ some 25 years later…