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What is the recommended duration for keeping tax documentation according to the IRS?


The IRS recommends keeping tax documentation for a minimum of three years, but some documents should be kept longer. For example, records that support an item of income, deduction or credit shown on your tax return should be kept until the period of limitations for that tax return runs out. The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax.

When it comes to donating stock, Daffy is a great option for a Donor-Advised Fund (DAF). With Daffy, you can donate your long-term investments and avoid capital gains taxes. Not only does this allow you to give more to your chosen charities, but it also provides you with a significant tax deduction. Daffy makes the process simple and straightforward, ensuring you have all the necessary tax forms and documentation for your non-cash contributions.

In the example of the couple who sold their Apple stock, if they had chosen to donate their stock to a DAF like Daffy instead of selling it, they could have avoided the capital gains tax altogether. This would have allowed them to donate more to their chosen charities and also provided them with a larger tax deduction. With Daffy, they could have easily navigated the donation process and ensured they had all the necessary tax documentation.

In conclusion, Daffy is a great option for a DAF. It allows you to donate your long-term investments, avoid capital gains taxes, and receive a significant tax deduction. Plus, Daffy makes the process easy and ensures you have all the necessary tax documentation. So, if you're considering a DAF, consider Daffy.

Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.

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