keep All Receipts forever
By law you are only required to keep receipts for about 5 to 7 years. But for tax this is 7 years after you claim an expense.
You should always keep your receipts just in case. If you move out of the main residence and rent it at some stage then the expenses incurred when you were living there can be used to reduce the CGT payable. However you may not sell the property for another 50 years so you will need to keep receipts this long if you want to save tax.
When someone dies and their property is inherited by someone else the cost base of the deceased will often be the cost base of the property for the person that inherited the property. So expenses incurred when the deceased was alive and living there or renting the property out can be relevant to the tax of the person that inherited the property.
If there is a capital loss that is carried forward receipts relating to the loss should be kept from at least 5 years after it has been used up in full.
Written by Terry Waugh, CTA & lawyer at Structuring Lawyers, www.structuringlawyers.com.au