keeping records (by Bob Alexander [ME]) Sep 26, 2014 11:59 AM
keeping records (by Robert J [CA]) Sep 26, 2014 6:45 PM
keeping records (by Martin [CO]) Sep 27, 2014 8:41 AM
keeping records (by Bob Alexander [ME]) Sep 27, 2014 9:00 AM
keeping records (by eddy mac [IL]) Sep 29, 2014 6:48 AM
keeping records (by Robert J [CA]) Sep 29, 2014 7:32 PM
keeping records (by Nellie [ME]) Sep 29, 2014 7:52 PM
keeping records (by eddy mac [IL]) Sep 29, 2014 8:30 PM
keeping records (by Bob Alexander [ME]) Posted on: Sep 26, 2014 11:59 AM Message:
State Specific Question About: MAINE (ME)
How long do I keep records of (former) tenants & applicants? --72.95.xxx.xxx |
keeping records (by Robert J [CA]) Posted on: Sep 26, 2014 6:45 PM Message:
Records Forever!
I had a tenant that I evicted 15 years ago for non-payment of her apartment rent. She lived in a small 1 bedroom unit in a 8 unit apartment complex in Koreatown, Los Angeles. This property didn't have enough parking spots for all units so I had separate garage leases for those who rented a garge from me.
Most of my tenants always paid in cash. I always issued a hand written receipt for any cash payment and made a copy of a tenants payment by check or money order.
This x-tenant was caught selling drugs at her new apartment in downtown L.A. As apart of her plea agreement, she had to tell about any drug or cash under the table deals. So she reported paying me cash for her rent and garages and said that I didn't ever report the garage revenue as income, I just pocketed the money.
The IRS launched an investigation into my real estate business. They asked for all records going back 20 years from my 100+ apartment units, commercial rentals and retail stores. I laughed in their faces and said that their witch hunt was to broad and I needed them to tighten in the scope -- I wasn't about to hand over 200 boxes of records. Before I was fined I got this case before a Judge. I told the Judge that if I can't produce reliant documents to specific charges, then I will hand over everything.
After learning of the charge and tenant, I provided the investigators with all leases, method of payment, copy of rent checks and cash rental receipts along with my tax return showing a breakdown between rental income and royalties -- garage rents. I proved that my x-tenant was lying.
With out my records of that x-tenants cash receipts, I would have had to turn over everything and if my records couldn't prove I reported my garage income, I would have been ordered to pay the taxes, penalties and interest on those proceeds plus 1% per month for the last 15 years.
--173.55.xx.xxx |
keeping records (by Martin [CO]) Posted on: Sep 27, 2014 8:41 AM Message:
First - congrats to Robert for being able to save his bacon.
Second - Bob Alexander, I would suggest that you find a way to scan in all your paper records, and then just keep them. Now, if you have 200 boxes like Robert described, that is quite a task. It might be worth paying somebody scan it all in for you. But once it is all digital, there is no reason not to keep it forever. A single CD or thumb drive could hold everything. And certainly put everything from this time forward onto digital. --75.166.xxx.xxx |
keeping records (by Bob Alexander [ME]) Posted on: Sep 27, 2014 9:00 AM Message:
I meant Tenant records (leases, documents they signed, disclosures we gave them, etc. I KNOW enough to keep all of my Financial Records. --72.95.xxx.xxx |
keeping records (by eddy mac [IL]) Posted on: Sep 29, 2014 6:48 AM Message:
I'm amazed they can go 20 years back. I only thought they could go back a few, maybe 5 at the most. --207.63.xxx.x |
keeping records (by Robert J [CA]) Posted on: Sep 29, 2014 7:32 PM Message:
ON A RECENT FARM BILL, CONGRESS PASSED A NEW TAX LAW THAT ALLOWS THE IRS TO GO BACK 20 TO 40 YEARS IF NECESSARY. THE 5 YEAR RULE NO LONGER APPLIES. --173.55.xx.xxx |
keeping records (by Nellie [ME]) Posted on: Sep 29, 2014 7:52 PM Message:
Whatever happened to the statute of limitations? 40 years? That is unreal. --64.223.xxx.xxx |
keeping records (by eddy mac [IL]) Posted on: Sep 29, 2014 8:30 PM Message:
Robert,
I did some research and still couldn't find the 20 years law anywhere. I thought I heard that before also. I just read that if its because of fraud they can go back to whenever they want to, which I'm sure they can claim most of it is. But if its a question about an asset you have or had they can only go back three years from your return. I read that on the irs website from june 2014. --71.239.xxx.xxx |
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