SESK: Stuff Everyone Should Know · sesk.info/biz-property-records-until-disposal
How long should federal tax records for business property generally be kept?
Until the limitations period ends for the year the property is disposed of.
- Until disposal year's period expires ✔
- Only until the first depreciation entry
- One week after purchase
Why: Property records establish basis, depreciation, and gain or loss. Keep them through the applicable limitations period after sale or other taxable disposition.
Huh, didn't know that: For a nontaxable exchange, records for the old property may need to follow the new property until its taxable disposition.
Why did the asset keep its receipts? It had a basis for everything.
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References
Answer: Until disposal year's period expires. Property records establish basis, depreciation, and gain or loss. Keep them through the applicable limitations period after sale or other taxable disposition.
- IRS, How long should I keep records? www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records
Keep records relating to property until the period of limitations expires for the year in which you dispose of the property.
Checked 2026-10-11.
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