Record Keeping and Your Home Office

Now that you are the owner of your home office, you may have to overcome many difficulties. Record keeping is one such major and critical responsibility. But is it getting over your life? Are you maintaining every single bill, tax return receipt, insurance invoice and medical document for the past ten years? If your answer is no, dont worry, as there are many like you. People are generally not sure about how long financial record retention should last? So let us constitute a document retention policy that works best for you!

Guidelines for record retention:- When it comes to retention of financial records, dont worry because there are not any hard and fast rules. But there are some basic rules, which you can understand and then select the best.

Suggestion for Record Retention:- Since there is a lot going around about identity thefts, good record keeping should involve destroying all the records that contain personal information and you can do this with scanners. By using this method, you can store many receipts and important documentation neatly and in an organized fashion.

Marketing the Document Retention policy:- A quick and easy way of keeping records is to do away with unnecessary mail.

Tax Return Receipts and Backup Documentation:- Tax returns should be maintained for seven years, personal and official. This is a long period of time, but think of it as an annual cleaning activity whenever new returns are filed.

The IRS keeps copies of your tax returns, but for your safety, it is safer to maintain your tax returns. Scanners can help you with this, as you can scan your backup information and reduce your paper pile.

Health Records:- The health record of you and your family should be maintained indefinitely. This record should be maintained with the complete contact information on physicians and medical history, with the medical prescriptions. This information helps you to save time and energy in the future, in an emergency.

Medical Records:- If you want to claim medical expenses while filing your tax return, then it is advisable that you maintain the records for 7 years from the date of claim. For other medical records, you can maintain them for 5 years from the time of treatment.

Life insurance policies:- This should be maintained for a minimum three-year period.

Medical Insurance policies:- This includes the premium statements, doctor bills, prescription copies and hospital bills. The general rule is that they should be maintained for five years from the date on which the service was rendered.

Home Insurance:- The time frame suggested is five years. If you think you have some issues, then go in for the ten-year rule.

Warranty documents:-Always keep in mind that the very moment you discard an old appliance or telephone or anything else with warranty, you can safely dispose off the papers too. Generally, warranty documents can be disposed off on the expiry date specified.

Home Repair Bills:- This is also an area where a scanner can save your filing. These records can be maintained for ten years, if you have an inkling of litigation.

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