I’m wondering how long to keep royalty statements? My file cabinets are overflowing!
The detail allows you to audit and confirm that you have been properly paid. One way to reduce the paper is to scan the statements to pdf and label with at least date and payee and any other information that is significant to you. For example, 2020-Dec - Chevron. Be sure to back up your data to an external hard drive for security, as well as your other important documents and data. Even individuals are subject to ransomware or other loss. Good way to keep for family too.
My accountant has said seven years for IRS purposes. Check with yours. I do the scanning as TennisDaze suggested. We are also in the process of scanning all those file cabinets and maintaining copies of everything in a secure cloud location and backed up on an external hard drive as well.
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