Tips

A Quick Start Guide to Decluttering:

·      Start by sorting like items into categories.

·      Toss, donate or recycle any items that you no longer need, use or love.

·      Assign a home to your item. Where is this item going to live for easy access?

·      Contain your things into clear bins so it is easy to find and label it. Measure first then buy.

·      Maintain your new area regularly to keep your lifestyle simple.

Decluttering 101:

· Leave a brown paper grocery bag in your closet. When you see an item you no longer need, use or love- place it in the bag. A full "donate bag" means it's time to take the whole thing to the donation center and replace the container to start again.

· When you're retrieving a supply (e.x. scissors, writing paper) and you have two minutes to spare, go through that box or drawer and hunt to collect and dispose of unneeded items. 

· Cleanup daily for 3-5 minutes in each room. Put items back to their designated homes. Teach your children this daily routine.

· If you have an extra few minutes during the day - ex. while on hold on the phone- organize the junk drawer, pantry or paperwork.

· Purge areas - 1x year – closet, garage, basement, kitchen.

Paper Retention:

Tax Returns and Supporting Docs:

• IRS 3 years to challenge, must keep 3 years' worth of returns and supporting documents.

• If IRS suspects you haven't reported income, it can challenge returns from past 6 years. If you are self-employed or have multiple income sources, hold on to 10 years.

• No statute of limitations if you fail to file or if the government suspects you of fraud.

• To learn more about IRS record keeping guidelines, see Publication 552 on their website IRS.gov.

Forever Docs:

• Never Toss: birth certificate, marriage license, divorce decree, will, trust, estate planning doc, death certificates, adoption papers, record of paid mortgages. **Make sure your family can access these important records if you die. Keep in a safe place.**

• Permanent File: Loans you have paid off (mortgage, car, school) if later find mistake with how data was reported to credit bureaus—or if an identity thief

What to hold onto while active:

Contracts, Insurance Docs, Stock Certificates, Property Records, Stock Records, Records of Pensions & Retirement Plans, Property Tax Records Disputed Bills (keep the bill until the dispute is resolved), Home Improvement Records (Hold for at least 3 years after the due date for the tax return that includes the income or loss on the asset when it’s sold)

Insurance Policy, Deeds, Titles:

• Active Account - policy statement: auto, homeowner's insurance, deed to your home, car titles

• Home Insurance - min 5 max 10- if you think that you may have issues

• Big-Ticket Purchase - keep receipt if insurance claim and photograph the possessions  

• Medical Insurance - 3 min max 5- from DOS rendered- includes premium statements, doctor bills, copies of prescriptions, hospital bills, eob’s

• Cancelled Insurance Policies - 3 years

• Records of Selling a House - 3 years, Documentation for Capital Gains Tax

• Records of Selling a Stock - 3 years, Documentation for Capital Gains Tax

Warranties and User Manuals

• Save only active warranties

• Manufacturers DL versions on Websites, UsersManualGuide.com, ManualNGuide.com

Investment Statements

·      Monthly/Quarterly Statements: 1 year. Get annual statement, then toss

·      Annual Investment Statements: 3 years, hold onto 3 years after you sell your investment

·      Make Trades: during the year, keep a record of each transaction for at least 3 years.

·      Nondeductible contributions to a traditional IRA or conversions to a Roth IRA: save the IRS form 8606 you filed when making the deposits. When you withdraw during retirement, it will be a piece of cake to prove you've already paid the taxes.

***This is a “Tip" page and it only serves as suggestions. Always double check with your accountant before discarding papers. Space Organizing Solutions is not responsible for your discarded paperwork decisions.***