How long to keep tax records for business?

You should keep your business records for a minimum of three years for federal income tax purposes. Records retention for state tax agencies varies, but three years would also be a minimum for these tax authorities as well.

Note that your records having to do with any depreciable capital assets should be kept until at least three years after the assets are disposed of.

Also, any records having to do with tax carryover items should be kept for at three years after the carryover is used up.