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Some people had issues with why I want to hold onto the "stuff". They're mostly personal effects eg. documents, papers, files, etc, not "junk" junk
I was going to suggest scanning them too, but a couple of other posters beat me to it. I have a scanner at work and it would take me literally about 2 minutes to scan, say, 100 pages and create a .pdf of everything. Definitely look into that!
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Originally Posted by thrillobyte
As to why I don't move it to storage I think I explained that nobody in their right mind would put it in public storage. If you're not familiar with how the system works then rent one and sign a year to year contract with them and you'll get a real good education on how bad renting one is.
OP, you originally just called getting a storage unit a "suicide option" and I really had no idea what you meant by that. I've had a storage unit in California and another here in New Hampshire and my experience was perfectly fine both times (they were pretty cheap, and no one broke into either!). But from what you wrote after the post above, storage units where YOU live are both expensive AND not secure -- so now I "get" your hesitation! I think scanning may be your best bet.
What happens if the buyer wants to sell the house before you die? It's a nightmare waiting to happen and no good attorney would recommend a buyer do that unless they're getting a screaming deal!
This is the best comment. Seriously, who would want to buy under these circumstances? Not me!
Why is moving everything into storage a "suicide option"? What does that even mean?
Maybe the OP is a mass serial killer who has stored his trove of bodies and souvenirs there. Suicide = time to eat own gun if trove is found.
I predict the viability of finding a buyer willing to accept this kind of deal is vanishingly small, close to zero.
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Originally Posted by thrillobyte
Yes, the stuff is mostly burden. Unfortunately, antiques are very hard to appraise. One may be worth $2 while another is worth $200,000. I've never cared enough to make the effort. The papers are nearly all financial transactions--all the paperwork generated by sales of homes my mother and I owned and took deductions on thus as long as the IRS can call us in for an audit they must be held onto. Truly I'd like to get rid of most of it but...well, for this reason or that...
My CPA says keep rental records for 6 years, which I believe she said exceeds IRS requirements. AFAIK IRS has a 3 year record keeping requirement, although be careful when the clock starts each year. Not necessarily April 15th.
I think you should get off your butt and triage your stuff. Separate records and antiques first. Ask your CPA how long records should be kept, toss anything older. Then get 2-3 antique dealers to look at the furniture and collect bids. That will tell you which $2 stuff to toss. Store the rest.
I bet there are services that scan records -> digital media. I bet one standard file cabinet drawer of records would fit on a DVD, or 2 for sure.
Your real problems are (1) you need to find out how long records must be kept and act upon that, and (2) you need to quit procrastinating and find out what furniture is worth keeping or selling (even better unless you plan to use it).
If there are any other items stored then handle them appropriately.
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Originally Posted by thrillobyte
Yep, the documents ARE very important since the IRS exists, unfortunately. They can come back and haunt me anytime they want even though on the sale of the houses we paid nearly half a million dollars in capital gains (quarter million apiece). Seems like they're always coming back for more, saying I took this expense or that expense when I shouldn't have, etc.
Like I said, consult with a CPA and determine EXACTLY what the IRS document keeping requirements are. And also like I said, consider having them mass scanned to digital media.
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Originally Posted by thrillobyte
Unless the garage catches fire, which is highly unlikely, the docs are perfectly safe there. Re the antiques, eh! Another headache. I can call 2 or 3 dealers over to start a bidding war but I'm just too lazy because if the docs have to stay somewhere then why not just keep the antiques and paintings there too. They are expendable, the docs are not. As for the furniture, it's five pieces all chests of drawers, all filled with the docs (she owned and sold about 20 pieces of real estate in her time) so they have to stay too.
Not that unlikely. Maybe nature will do you a favor and it will burn down this week, or next year, or 2020. -- And you admit you are lazy. That is considered to be a character flaw around here. (anywhere)
Your connecting the docco to the antiques has no basis in reality. They are two separate things, and it's reasonable that an intelligent solution would require separate treatment.
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Originally Posted by thrillobyte
Far as selling the property she can't. She bought it for around 15K in the 70's and it's worth about 650K now so she'd pay a huge capital gains. NO MORE DOUGH TO THE FEDS!!!!
And just how is paying the tax man later going to be better than paying now? Each year the capital gains get bigger and bigger. There is "no more dough to the feds." You can never escape that (unless of course both you and your mother die before selling the property).
Quote:
Originally Posted by thrillobyte
Let me tell you all about how public storage works: you sign a 1-year contract for $100/month. The next year your rent jumps to $250/month, and the year after that $400. If you don't like it then pack your stuff and move to a new facility. Meanwhile lockers are being broken into and robbed constantly by thieves with premium bolt-cutters. Also they're completely buggy with vermin. Is that where a person should keep their valuables when they have a choice? It's more about security than they money. If I had to sell for 30K less it'd be worth it to me to retain possession of the garage on a long-term lease.
No that's not how it works. I rented at P.S. Storage for 3 years and my rent never increased.
Well you can tell I've been reading and multi-quoting, reading and multi-quoting, and some of my points were already covered. Many have confirmed my suggestions.
Conclusion: either get used to owning the property, move your junk, or follow one of my suggestions or others presented in this topic.
Yep, the documents ARE very important since the IRS exists, unfortunately. They can come back and haunt me anytime they want even though on the sale of the houses we paid nearly half a million dollars in capital gains (quarter million apiece). Seems like they're always coming back for more, saying I took this expense or that expense when I shouldn't have, etc.
Unless the garage catches fire, which is highly unlikely, the docs are perfectly safe there. Re the antiques, eh! Another headache. I can call 2 or 3 dealers over to start a bidding war but I'm just too lazy because if the docs have to stay somewhere then why not just keep the antiques and paintings there too. They are expendable, the docs are not. As for the furniture, it's five pieces all chests of drawers, all filled with the docs (she owned and sold about 20 pieces of real estate in her time) so they have to stay too.
Far as selling the property she can't. She bought it for around 15K in the 70's and it's worth about 650K now so she'd pay a huge capital gains. NO MORE DOUGH TO THE FEDS!!!!
Let me tell you all about how public storage works: you sign a 1-year contract for $100/month. The next year your rent jumps to $250/month, and the year after that $400. If you don't like it then pack your stuff and move to a new facility. Meanwhile lockers are being broken into and robbed constantly by thieves with premium bolt-cutters. Also they're completely buggy with vermin. Is that where a person should keep their valuables when they have a choice? It's more about security than they money. If I had to sell for 30K less it'd be worth it to me to retain possession of the garage on a long-term lease.
I would only use a storage facility if my house had to be vacated for renovations and it would be done in a couple of months. I know a few people who have wasted lots on money on these places only to have mice and rats move in and ruin the contents... no way. And also spend tons on storage for stuff that's totally not worth it.
But. As much a pain as it might seem, you could scan and burn those docs onto computer storage of your choice and the shred and toss. You can retrieve them if you need them, and the paperwork is gone. Moreover, I believe you can hire someone to do it.
Then get an antique place or consignment place to look at the furniture and paintings. Make a little dough and sell the house.
By the way, it's my understanding the IRS can go back as far as they want only if they can prove you are cheating.
BTW I scan EVERYTHING that does not require originals (like deeds).
I learned my lesson last time I moved and had 6 drawers full of documents to get rid of or keep. Even the "get rid of" wore out one shredder and probably half the life of a second one.
This is a lesson for everybody not just the OP: go digital as much as you can, and remember to have everything important saved to TWO media, i.e. redundant.
I wonder what happens when the IRS says "gimme this" and your garage burned down.
In my state, when you sell your house, a copy is requested when an offer is made. Maybe for title search purposes?
I'm pretty sure Jack is right. In any case you can get a copy from the county recorder's office or whatever agency is responsible for keeping the records.
In fact I think my deeds are simply certified copies.
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I have a scanner at work and it would take me literally about 2 minutes to scan, say, 100 pages and create a .pdf of everything. Definitely look into that!
