Posted on November 08, 2006 at 16:59:51:
What should you keep? What can you throw away? At least once a year, go through your paperwork and thin it out. If you don’t own a shredder, invest in one for privacy and identity protection.
Once your monthly bank statements list ATM transactions and credit-card purchases, you can ditch those little slips you’ve been holding onto (unless you’ve charged business expenses you’re going to deduct). Toss utility bills when payment is noted on the next ones. Tax documentation should be saved for three years after filing, six years if you own a business – but not forever.
Do save any statements that show the date and purchase price of a stock or mutual fund so you can match it with the sale information. Keep year-end statements, too, that indicate how much you have reinvested.
Start recording any sales tax you pay, especially for big-ticket items. It may offer a better deduction than state income taxes.