Recordkeeping for Property Transactions
Maintaining Proper Documentation
Accurate records are essential for determining basis, holding periods, improvements, and selling expenses. Good documentation simplifies tax reporting and supports reported amounts.
- Purchase agreements
- Settlement statements
- Receipts for capital improvements
- Brokerage confirmations
- Sales documents
Tip
Retain records for as long as required by applicable tax and recordkeeping rules.
Summary
Good records reduce errors and make capital gain calculations much easier.