How Long Do You Have to Keep Documents After Selling a Home in Ft. Myers?
As the world grows more digital, it’s difficult to imagine keeping all of the paperwork that comes with your home, especially after you sell it. Real estate transactions can require over 180 sheets of paper, resulting in a large stack and cramped hands from all of the signing.
But once you’ve sold your home, how long should you maintain your loan and property records? Before you start sorting through your “keep” and “toss” piles, take a look at which papers to keep and how to save your house sale paperwork efficiently.
Saving Documents After Your House Is Sold
You must keep documents related to your home for as long as you live there. When you’re attempting to showcase the value of your property to potential buyers, you’ll be glad you kept track of how much you paid for it and how much you spent on upgrades.
Another reason to save these documents is that certain costs can be deducted from your tax bill if you sell your home for a large profit. This amount is $500,000 for married couples filing jointly or $250,000 for single filers.
Keep any paperwork about your home for three years after you’ve sold the residence. Unless you need them for tax purposes, you may also get rid of paper copies of most monthly bills, such as credit cards, utilities, and cable TV, after three years.
Other Important Documents to Keep
Your annual tax returns are the most critical records to save. Your actual returns should be kept indefinitely, but the supporting documentation can be discarded after three years. The IRS has that much time to start an audit. Thank-you letters from charities and year-end investment statements should also be kept for at least three years.
Keep track of the amount you paid for stocks and mutual funds when you first buy them so you can figure out your basis when you sell them. After that, when the three- or six-year IRS limit expires, you can trash the records.
Securely Getting Rid of Documents
There’s no denying that the paperwork from selling your home has a ton of personal information. You should never just toss documents like these with personally identifiable information in the trash or delete them off your computer.
Affordable options like ShredQuick allow you to rest easy. We provide secure paper shredding, as well as demolition for hard drives. Call us to make sure these sensitive documents are gone for good!
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