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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 08-27-2012, 08:27 AM
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Blackcat31 Blackcat31 is offline
 
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Default How Long Do We Keep Stuff?

How long are we suppose to keep records and taxes?

My DH and I are doing some MAJOR remodeling and "spring cleaning" and I realized that I literally have taxes and files of daycare kids/families from when I first opened back in like 1992.....

What should I keep?

I think the state (MN) has a specific requirement for how long I must keep files on children/families but I am unsure of how long I need to keep them.

I also have all my tax records from day one and don't know how long I need to keep them either.

I called my tax preparer and she said I need to keep everything until 3 years AFTER I go out of business. It isn't that I don't believe her but she hasn't always been correct in the past about things so I just want to be sure.
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Old 08-27-2012, 10:20 AM
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momofsix momofsix is offline
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I think Tom once said to keep all of your business paperwork for at least that long too.
Can you scan the things you need so that you con't have to actually keep all of the hard copies?
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Old 08-27-2012, 10:50 AM
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food program is 5 years I believe..improvements to the house would be until you sell the house

I thought taxes were 3 years or 5 if you are audited. now how would you know you would be audited in 5 years... I am likely wrong on those.
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Old 08-27-2012, 11:09 AM
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3 to 5 years...... I beat you I had stuff from 1999....OMG I am a horder...lol

I just finally bought a new shredder, so its all gone now.....
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Old 08-27-2012, 11:38 AM
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TomCopeland TomCopeland is offline
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Default Keep records

Quote:
Originally Posted by Blackcat31 View Post
How long are we suppose to keep records and taxes?

My DH and I are doing some MAJOR remodeling and "spring cleaning" and I realized that I literally have taxes and files of daycare kids/families from when I first opened back in like 1992.....

What should I keep?

I think the state (MN) has a specific requirement for how long I must keep files on children/families but I am unsure of how long I need to keep them.

I also have all my tax records from day one and don't know how long I need to keep them either.

I called my tax preparer and she said I need to keep everything until 3 years AFTER I go out of business. It isn't that I don't believe her but she hasn't always been correct in the past about things so I just want to be sure.
You need to keep your tax records for at least three years after you filed the tax return. So, as of today you need to save your 2011, 2010 and 2009 records. One exception to this rule: save records for anything you have been depreciating for as long as the depreciation period lasts, plus three years. Since most household items (furniture, appliances, tv) are depreciated over 7 years, if you bought a washer in 2010, save this receipt until 2020 (7 years plus 3 years).

Save copies of your tax returns forever.
In some states, you must save your state tax records for 4 years. If so, save your federal records for 4 years.
Save copies of payroll records for 4 years if you hired employees.
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Old 08-27-2012, 11:43 AM
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Blackcat31 Blackcat31 is offline
 
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Quote:
Originally Posted by TomCopeland View Post
You need to keep your tax records for at least three years after you filed the tax return. So, as of today you need to save your 2011, 2010 and 2009 records. One exception to this rule: save records for anything you have been depreciating for as long as the depreciation period lasts, plus three years. Since most household items (furniture, appliances, tv) are depreciated over 7 years, if you bought a washer in 2010, save this receipt until 2020 (7 years plus 3 years).

Save copies of your tax returns forever.
In some states, you must save your state tax records for 4 years. If so, save your federal records for 4 years.
Save copies of payroll records for 4 years if you hired employees.
Thanks Tom!

One more question, when you say save my tax returns forever, you are referring to just the prepared tax returns from my tax preparer or do I need to save receipts forever too?
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Old 08-28-2012, 07:13 AM
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Default save records

Just save your tax forms forever, not your receipts.
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