August 12, 2020

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If you’re looking for ways to declutter your home, a great place to start is with certain financial and other records. Before you dive into your decluttering project, however, you should know that not all of your old records should be treated in the same way.

Which Records Should You Keep, and for How Long?

More Recommendations for Decluttering

Home Offices

If you use a room in your home exclusively as a place to conduct business, you may be able to deduct that portion of your home as a home office expense on your income tax return. Each year you maintain a home office, you should save your utility bills, mortgage payment receipts, statements showing mortgage interest and real estate taxes paid, receipts for office equipment, and records for any vehicles that you use for business.

Safe Deposit Box

Every household should invest in a safe deposit box to store important documents like those listed in the table above. Doing so protects you from losing these vital records due to fire, burglary, natural disasters, or simply a lack of organization. Storing important documents items in a dresser drawer, closet, or worse yet, not in any particular place, is inviting trouble.

Let your immediate family know where your papers are located—and the name of your attorney and accountant—in case something happens to you. Write down this information, as well as where you have bank accounts (including account numbers), prepaid funeral arrangements, etc., and place it in a sealed envelope inside your safe deposit box. Let a trusted family member or friend know that you have a safe deposit box, and where you keep the keys. Note that they will not be able to access your safe deposit box without your permission or without a power of attorney document that you have prepared in advance giving them permission to do so.