Which Tax Records Should I Keep?

Concerned as to the amount of time you should keep your personal income tax records? Sometimes, taxpayers need to present these documents when the government reviews or audits a filed return or is trying to levy or collect tax. Also, these documents are required by creditors, homeowners associations, other concerned parties that have requisites to determine before giving someone the right to use money or extending credit to obtain property and for any other transactions that these documents are deemed necessary.

Retain your income tax records indefinitely. The accompanying records, income documents and deduction source information that are supporting financial evidences, should be kept usually for six years. Generally, the time limit for the IRS to assess tax for a given tax year is three years after the tax return was due or filed whichever is later, except for cases of fraud or a substantial understatement of income.

The IRS goes back more than three years when they determine more than 25% of gross income is not declared on a return, they consider this a substantial understatement of income, and the period for collection can be extended to six years. Also, IRS has no time limits and they can collect tax at any time when no return has been filed for a tax year. That is why it is necessary to keep your records for circumstances like these.

Hanging on to tax returns forever and other important source documents for six years should be sufficient. No one really knows when the IRS will try to go back to previous years and try to collect tax. When tax returns are filed electronically, make sure to obtain a hard copy paper version of the return from the accountant who prepared/filed your return.

Property records need to be retained until the property is sold. The tax effects of the dealings that take place this year may be affected by the purchases in the past. These purchase documents should be held on to until the property is sold. The following are some common examples:

Home was purchased in 1976 for $50,000. Additional $15,000 was incurred for renovations in 1993 and the home is sold this year for $200,000. To calculate the gain on the transaction, the cost information needs to be available. (e.g. purchase price plus renovations). In the event the IRS questions the return, the purchase and cost documents would need to be presented to the IRS. In this example, retain the records for six years after the tax return was due or filed whichever is later.

Some taxpayers have gains that qualify for primary home sale exclusion, which allows certain homeowners to exclude up to $500,000 of gain from the sale of a home. Even if this benefit applies to you, records relating to the home purchase and improvements should still be retained. The benefit may not be available in the future and it is impossible to know how much the house will be worth in the future.

There could be …

Kiev City Guide For Travelers

You are planning thoroughly your trip to Kiev, surfing the web for information on Kiev best sights, restaurants and night clubs, and thinking how to plan your stay the best, what to see and where to go to … You are packing your new Camera in order to make beautiful photos of golden domes, Khreschatik Street and Kiev parks … You are thinking what to wear and checking weather forecast for the days of your visit … In a few days or weeks you will get to another world With smiling people, ancient brick streets, monuments and cathedrals …

Quick facts:

Status: capital of Ukraine

Number of regions: 10

Date of foundation: fifth century AD

Area: 839 km2

Elevation: 179 m above sea level

Geographical coordinates: latitude 50 ° 27'N; Longitude 30 ° 30'E

Climate: moderate continental with mild winter and warm summer

Temperature: average Kiev temperature in January is 6 degrees below zero Celsius, average in June is 20 degrees above zero Celsius; Lowest temperature in winter is 25 degrees below zero Celsius; Highest temperature in summer is 32 degrees above zero Celsius.

Population: 2,6 million (2005)

Density: 3178 people / km2

Car code: AA

Phone code: +380 44

Kiev Mayor: Leonid Chernovetskiy (since 2006)

Kiev history

The legend says that there was a prince family of three brothers named Kiy, Schek and Khoryv and a sister Lybid. Kiy rule a powerful Slavic tribe and was looking for a place to settle a new home for his people. When they came to the beautiful hills upon Dnepr river and saw wonderful panorama of blue river and seven hills covered with chestnut trees, they liked that place very much and decided to settle there. They established a city and cave it the name Kiev in honor of their oldest brother Kiy more than 1500 years ago. Prince Kiy and his family lived on one hill, Schek settled on another hill which got the mane Schekavitsa, and Khoryv settled on the third hill called Khorevitsa.

Since 882 Kiev became the capital on ancient strong state called Kievan Rus. In 998 Kiev Prince Vladimir introduced Christianity in Kievan Rus by baptizing Kiev population in Dnepr river. In 1240 the city was destroyed by mongol-tatars who invaded Kievan Rus, and later it was rebuilt. Since 1362 Kiev and major part of Ukraine belonged to Lithuania and Poland and in 1654 it became part of Russian Empire and then USSR.

In 1991 Ukrainian people voted for independence of Ukraine and Kiev became its capital. Since that time it is the center of Ukraine's political, economic and cultural life.

In November 2004 Kiev was the central place of Orange Revolution when hundreds of thousands of Ukrainian people protested against election falsification in the streets and later elected another ruling party and the President of Ukraine.

Kiev accommodation

Most visitors to Kiev prefer apartment or hotel accommodation. Kiev hotels provide security and a certain level of service according to their level (three star, four star, five …