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All About Home Document Keeping
Paperwork.
We need files, whether they be electronic or paper for just about everything we do in this life. Purchasing a home is no different. Every meticulous homeowner should save everything from deeds to property tax payments.
In the following, we’ll tell you what to save, how long to save it and why to save it. We’ll aim to take the guesswork out of paperwork.
Why you need these docs: You use home sale closing documents, receipts for capital improvements, and other home-related documentation to calculate and determine your profit when you sell your home, to appease the IRS requests, to file claims and more.
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Why you need the above docs: To prove you’re eligible for a deduction or tax credit.
| Insurance & Warranties | |
| Document | How Long to Keep It |
| Home repair receipts | Until warranty expires |
| Inventory of household possessions | Forever |
| Homeowners insurance policies | Until you receive next year’s policy |
| Service contracts and warranties | As long as the item is warrantied |
Why you need the above docs: To file a claim or determine what your policy or warranty covers.
| Miscellaneous Records | |
| Document | How Long to Keep It |
| Wills and property trusts | Until updated |
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Date-of-death home value record for inherited home, and any rules for heirs’ use of home |
As long as you own the home |
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Original owners’ purchase documents (sales contract, deed) for home given to you as a gift |
As long as you own the home |
| Divorce decree with home sale clause | As long as you or spouse owns the home |
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Employment records for live-in help (W-2s, W-4s, pay and benefits statements) |
4 years after you make (or owe) payroll tax payments |
Why you need the above docs: To calculate capital gains when selling. Also, employment records help prove deductions.
Organizing Home Records
Space may be limited, so use technology to your advantage. Consider scanning your documents and saving them to a flash drive. Paper fades over time, so this helps to preserve the quality of your important files. Always save original hard-copy files, just in case the IRS requests one.
For more information regarding home record keeping, visit HouseLogic.
