AmyC
Expert Alumni

Deductions & credits

Since you are on the fence, choose the method that will be easiest to keep track of and explain, if the IRS asks questions.  

 

I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your  carryover information, and proof of your basis in your various investments. You must keep tax records  from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses, carryforwards,  and basis. This can be a digital or paper notebook. This will help track and prove whichever method you pick.

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