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For equipment, real estate, and other long-term assets that you use in your business or for investment purposes, you should have records that show when and how you acquired the asset, its purchase price, the cost of any improvements, any Section 179 deduction or tax deductions for depreciation, any deductions taken for casualty losses, when and how you disposed of the asset, the selling price, and any expenses of the sale.
In addition, you should have supporting documents such as purchase and sales contracts or invoices, real estate closing statements, and canceled checks or credit card slips.
These recordkeeping rules generally apply to your personal residence as well.
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