Re: do you have to make estimated payments on capital gains?
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no
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I thought this was correctc – I’m a bit rusty:
Your estimated payments are based on your last year’s tax. You have to have a certain % of last year’s amount paid in the current year. E.g. last year tax = $25,000. Say the % is 90 – I forget the required % - you have to make estimated payments of $22,500.
It doesn’t matter how this year’s income tax amount is figured. If you end up owing 50k tax this year, say in all capital gain, you still should have made the 22,500 (don’t have to pay the 27,500 until 4/15/08.
Per Ray Zee, it seems the estimate is based on 100% of last year - that is probably right, it used to be a %.
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