We've been in existence since 1988. How long should we keep
club paperwork and tax information before we can safely
destroy it? What are IRS regulations or recommendations?
Laurie Frederiksen on
Hi,
The IRS requirements are to keep all records that substantiate the basis in a capital asset for as long as you own it.
Your club is, itself, a capital investment for your members. You club also owns stocks which are capital assets.
Therefore, you should keep all records that validate what has been entered in your accounting for as long as you have the club.
We regularly have to resolve cost basis issues for clubs that have held stocks for many years. Without historical broker documentation, there is no way to do this.
It is fine to scan all historical information or download files from your brokers website and save them. Just don't count on the broker to save them for the full time you hold different investments.
You have a file storage area in bivio where you can store the information so all of your members have access to it if they need it.
Laurie Frederiksen Invest with your friends! www.bivio.com
We've been in existence since 1988. How long should we keep
club paperwork and tax information before we can safely
destroy it? What are IRS regulations or recommendations?
Mike Veteto on
Do we do both state and federal? club income taxes?
On Wed, Feb 3, 2021 at 3:36 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
Hi,
The IRS requirements are to keep all records that substantiate the basis in a capital asset for as long as you own it.
Your club is, itself, a capital investment for your members. You club also owns stocks which are capital assets.
Therefore, you should keep all records that validate what has been entered in your accounting for as long as you have the club.
We regularly have to resolve cost basis issues for clubs that have held stocks for many years. Without historical broker documentation, there is no way to do this.
It is fine to scan all historical information or download files from your brokers website and save them. Just don't count on the broker to save them for the full time you hold different investments.
You have a file storage area in bivio where you can store the information so all of your members have access to it if they need it.
Laurie Frederiksen Invest with your friends! www.bivio.com
We've been in existence since 1988. How long should we keep
club paperwork and tax information before we can safely
destroy it? What are IRS regulations or recommendations?