Many taxpayers wonder how long they should hold onto their tax records. A couple years? 10 years? Forever? In this article, we’re going to talk about how long to keep your tax records, specifically when it comes to 1031 exchanges of real estate.
The Safe Answer
There really isn’t a hard and fast rule about how long you should keep your tax forms. But the safest answer to the question posed above is forever. If you always have your tax forms on hand, you’ll always have them if a need arises. With the ubiquity of cloud storage services available, keeping these files stored digitally has never been easier.
1031 Exchange Documents
Keeping your tax documents on hand is especially important when it comes to 1031 exchanges. You want to be able to prove to the IRS that your exchange is legitimate at all times. If the IRS performs an audit a decade from now and they start asking questions about an exchange you did twenty years ago, you want to be sure that you have the required documents on file to back up your exchange.
1031 Exchange Your Property!
If you’re thinking about doing a 1031 exchange on your property, you’ve come to the right place! At Commercial Partners Exchange Company, we help taxpayers large and small with their like-kind exchanges of real estate. Our team has two decades of experience that we put to work on every exchange we facilitate. Reach out to us at our downtown Minneapolis office today to learn more about the 1031 exchange process and get started with your real estate exchange!
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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