What papers shud b kept for IRS when selling or buying homes? How long?

Dear Wx: The main item of contention will be the sale. Keep all documents for at least 4 years after any sale. Keep all papers related to the purchase until after the sale and the 4 years have elapsed. Keep all documents related to additions or improvements to the home for the period also. If you are involved in a rental house you will need all tax returns after you start renting until after the sale + 4 yrs. Your HUD forms (closing documents) contain most of the relevant info on the purchase and sale.





This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled AgentWhat papers shud b kept for IRS when selling or buying homes? How long?
All of the original papers from the sale to you,home improvement loans or cash spent for improvements and the sale of your home.


This is to determine the cost basis of any profit or loss on the sale of your home.


Also,after a certain age,you don't have to pay capital gains tax on the sale unless it exceeds a set limit that gets changed from time to time.What papers shud b kept for IRS when selling or buying homes? How long?
I would agree and say 4 or more years. This is assuming you filed all of your returns timely with the state and irs.
You keep everything until at least 4 years after you sell the house.