How to store tax records, receipts
• Learn what to keep. Although the world is changing to more online digital media, there are still a lot of paper copies of receipts and records. It is important that you hold on to everything as long as necessary. You should retain documents relating to an asset (for example, improvements to your house) for as long as you own the asset. Similarly, for insurance purposes, retain the receipts of all items you own, for as long as you own them. If in doubt, it may be safer to retain paperwork than to destroy it.
• Learn to file systematically. There are plenty of ways to file your documents logically. The simplest way to file documents is by date, so that you can find documents relating to a certain period. Within this filing system, however, you may also want to file things by category. Tax statements, for example, should logically be kept together. Expense receipts should also be kept together, and so on. Think about a filing system that works for you, then create folders or envelopes to store relevant documents together.