How long to keep paperwork (aka record retention)

Question

Can someone point me to a resources that can let me know how long I need to keep specific records related to rental properties? For example, a tenant lease after they move out, insurance policies, purchase/sale paperwork, etc (not an exhaustive list in the slightest).

I have suddenly become a landlord. My dad passed in January and had several rental properties (you can read my intro post for more info on them), and not only did I get the properties, but all the paperwork that goes along with them (including paperwork for property he sold). Right now it is likely that we will keep at least some (maybe all?) of the property. My dad has a lot of paperwork and as I'm sorting through it I'm just not sure what's stuff I need to keep and stuff I can toss cause he literally kept everything. I've found is taxes dating back to 1970 just to give you an idea of how much paperwork my dad saved. Thanks!

Charles Carillo · Answer

@Jerah Yassine

I would keep everything dated within the last 7 years. Most of the other documents can most likely be shredded. Make sure to check through it though since there might be some deeds or copies of title insurance etc. that you should hold onto.

Jerah Yassine · Answer

Thanks! This answers my questions.

Bill B. · Answer

You’ll need to keep anything that changed the basis of any properties you still own. You should try to find all the deeds/titles/note payoffs that you’ll need someday intel future if you ever sell. You should start looking now for a cpa you like and trust that will take over the taxes. This is not something you want to try out or look for during tax season. You’re going to need the recent tax returns that show existing basis and the schedules.

Ps. Now that I think about it. I don’t know how all that changes with the stepped up basis you should have gained upon his passing but you’re going to want to find a cpa that is confident of what happens and what you need to keep. You may start depreciating all over from the current value (you might want to ask a local realtor or appraiser to give you a professional opinion of current value for irs and cpa.) this would also mean you could discard of even more paperwork from the past.