Renting and Leasing Tangible Personal Property: Recordkeeping

You must keep records of all your rentals, leases and purchases for at least four years. The records must show that you properly collected, reported and paid or forwarded taxes to Idaho.

Records to keep

  • Normal books of account
  • Documents that support entries in the books of account

    • Bills
    • Receipts
    • Invoices
    • Credits granted
    • Lease contracts
    • All schedules or working papers used to prepare your tax returns
  • Copies of sales tax resale or exemption certificates
    Keep resale or exemption certificates for as long as the company does business with that buyer, plus four years. We’ll bill you for tax due if you don’t have completed exemption certificates for buyers you sell to tax exempt.
  • Tax returns
  • Tax payments

What the records must show

  • Gross receipts from sales and services made in Idaho, even sales that you or your customer might consider exempt from tax. If you deliver the product or service somewhere other than your place of business, you also must keep records that prove where delivery took place.
  • The identity of customers claiming an exemption, the type of exemption, and what you sold them tax exempt.
  • All deductions claimed in filing returns.
  • The total purchase price of anything bought for sale, rental, lease, or your own use.
  • The amount of sales tax collected from your customer or that you paid to a vendor.

You must keep all sales and use tax records and exemption certificates for at least four years. You should keep them for seven years if you don’t file returns.