Submitted by: G Kharchenko

Boxes, boxes, and more boxes. The first time my family moved across the country, we packed everything ourselves to save money. I began packing three months ahead of time, but since I was working full-time and raising two babies, I wasn’t able to pack until the children were asleep at night. To complicate matters, my wife had already relocated and could only help me pack every three weeks when she returned home. To say the least, on moving day I was unprepared and in a panic. When the moving van pulled away, there was hardly room in my car for my two children, it was nearly filled with miscellaneous items that hadn’t been packed or loaded onto the van. That was a nightmare I’ll never repeat! I’ve learned to be prepared.

The following are recommendations for saving financial and legal documents. Since tax rules change Irony year to year, always check with your accountant.

Tax Documents

To stay organized all year long, collect all tax documents received throughout the year and place them in a large envelope in your home office. Label the envelope “Tax Documents Year”. Keep your tax records in a filing cabinet or portable file box. In most cases, the Internal Revenue Service (IRS) has three years from the date on which your income tax return was due to request an audit. (If you underreported your income by more than 25 percent, the IRS has six years. If the agency suspects fraud or if you didn’t file at all, there is no auditing deadline.

Investment Records

You must be able to document when you bought an asset and how much you paid for it, and when you sold it and how much you sold it for.

Credit Cards and Statements

Credit card accounts need to be canceled if you no longer use particular credit cards it is not enough to cut up and throw away an expired card. You must call the credit card company and request cancellation of your account to prevent the possibility of unauthorized charges to your account. It is your job to protect your own credit status. The only rule for retaining credit card statements is that you keep any statement that shows a purchase for a tax-deductible item.

Moving Expense Receipts

Unreimbursed expenses of moving your personal effects and household goods and traveling to a new job location may be tax deductible if the distance and time tests are met. Job-hunting costs and commuting costs to a temporary workplace may also be deductible. (Consult your tax guide or tax accountant for the most recent lax laws on this subject.) Relocation expenses may include:

– Airline tickets and rental car and hotel receipts

– Moving personal effects and household goods and automobile-expense receipts

– Mileage records, parking fees, and toll receipts

In your escrow paperwork you will find your final settlement statement, also referred to as the U.S. Department of Housing and Urban Development (HUD) Report. This document will provide information needed to complete your income tax return. Deductible expenses may include prepaid mortgage interest and proper taxes when buying or selling a home, and mortgage points or a loan origination is prepaid interest solely for the use of the loan money, not services.

Receipts for Automobile Licensing Fees

Automobile licensing and registration lees may contain tax-deductible expenses in some .states. (Consult your tax guide or tax accountant for the most recent tax laws that apply to your stale.)

Receipts for Charitable Donations

Clothing, household goods, and automobiles donated to a charity, and books donated to a library are tax-deductible items. Use prices at thrill or consignment stores to determine value (or use 20 percent of the original costs). It is best to keep receipts for all donations; however, you are legally required by the IRS to have a written receipt tor donations valued over $250.

About the Author: Georgiy Kharchenko – FreePackingMoving.com, local and out of state, interstate – moving:

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