There are a range of reasons to keep records. In addition to tax purposes, people may need to keep them for insurance purposes or for getting a loan. Good records is useful to: Identify sources of income. People may receive money or property from a variety of sources. Records help them determine the sources of income needed to separate business from non- business income and taxable from nontaxable income. Keep track of expenses. This will help taxpayers identify expenses

What is a tax deduction? A tax deduction helps you to lower taxable income, which results in reduces tax liability.