How long should you keep your receipts/bills?  Consumer advocate Dave Cherry(Call 12 Mailbag) suggests keeping tax returns, deeds and mortgages permanently.  Keep all records, relating to income, for seven years, and medical receipts and paid-in-full loan documents for four years.  Keep bank statements - including all canceled checks, receipts for living expenses, vacations, clothing and entertainment - for three years. 

     What I am continually baffled by is that no one ever mentions that home/property improvement receipts should also be kept - permanently - as capital gains taxes for home sales are calculated using those items.  Remember - for a married couple, filing jointly, up to $500,00K in capital gains can be tax-free;  up to $250,000K for people filing individually.  This is extremely important for today's rapidly escalating housing market.  When in doubt, don't throw it out!