What do you do when your tax records are lost and destroyed.

What happens if you lose your records in US or Canada? Ok, your hard drive crashed or you had a a big flood or tornado destroy all your records, and you get audited. No where in the Tax Code does the word MERCY occur. You MUST still have back up or you can reconstruct your records. If no documentation and no basis for reconstruction: tough luck!
It is thus VITAL that you always back up your hard drive ( especially if it contains valuable tax documentation such as scanned documents) on the web or store a back up in a fire proof safe or safe deposit box. Remember NO documentation for any reason= no deductions

Big Tip: Video everything that you own. Make sure that you speak into the video describing the items such as “sony 51 inch trinitron.” Make sure you note the serial numbers if there is a burglary so that the police can track down your items. Take a picture of all kitchen appliances, art, decorations, furnishings and clothing in case of fire or tornado. You will REALLY thank me for this information if a disaster happens to your home

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