Selfies for the IRS? How to Keep Your Own Tax Records (without Going to Extremes)

By Elsie Dudukovich0 Comments

How would you solve the problem of proving how much time you spend at home?  Pennsylvania resident Andrew Jarvis pondered this question when he discovered there were possible tax implications of also living part-time in New York.  As discussed in a recent story from Time magazine, Jarvis had to be aware of how many days he spent in New York before he was considered a resident of both states.

Although it might sound extreme, Jarvis was right to consider how he would prove he was following guidelines if the IRS or New York’s Department of Revenue ever questioned his actions. The same is true for keeping records in your self-directed IRA. Setting aside the concern of being audited, you will most likely find it beneficial to maintain straightforward, easily accessible records of your IRA’s activity.  In addition to the resources in myEQUITY, one of the ways Equity Trust helps you accomplish this task is through your quarterly statements.
You can use your statement as a snapshot of each incoming or outgoing transaction for your IRA.  The quarterly statement provides information in a concise and consistent way if you ever have a question regarding when or where or with whom an activity took place.

In addition to your own recordkeeping, remember Equity Trust retains a copy of our clients’ account statements, Direction of Investment forms, and holds all received supporting documentation in our safekeeping vault.  Feel free to contact your Client Services Team at 888-382-4727 if you ever have a question or need assistance with any aspect of your account’s history.