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As part of my effort to organize myself for the New Year, I’ve found that I’m starting to become a pack rat with papers.
While I was busy purging paper and backing up the electronic data, I realized that when we don’t know how long to keep something, we end up keeping it forever… or not at all. Here’s how long we should be keeping those important papers:
Even after you sell investments or real estate, you’ll still need to keep the gain or loss documentation for tax purposes.
Many of the following will contain information that supports tax returns. Therefore it’s best to keep the following for seven years: