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Old 11-09-2007, 11:13 AM
xxThe_Lebowskixx xxThe_Lebowskixx is offline
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Default do you have to make estimated payments on capital gains?

i sold some stocks for long term capital gains at the beginning of the year... was i required to make estimated payments on these earnings?
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Old 11-09-2007, 11:44 AM
CrushinFelt CrushinFelt is offline
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Default Re: do you have to make estimated payments on capital gains?

no
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Old 11-10-2007, 11:43 PM
Ray Zee Ray Zee is offline
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Default Re: do you have to make estimated payments on capital gains?

if self employed you are required to pay quarterly est. tax payments. to not have penalties you need to pay in what you paid in taxes for the previous year or the amount of your current year tax. in general with some exceptions.
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Old 11-11-2007, 12:20 AM
SlowHabit SlowHabit is offline
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Default Re: do you have to make estimated payments on capital gains?

The more you pay now, the less it hurts later.
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Old 11-11-2007, 01:18 AM
RJT RJT is offline
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Default Re: do you have to make estimated payments on capital gains?

[ QUOTE ]
no

[/ QUOTE ]

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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Old 11-11-2007, 03:08 AM
haakee haakee is offline
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Default Re: do you have to make estimated payments on capital gains?

[ QUOTE ]
Per Ray Zee, it seems the estimate is based on 100% of last year - that is probably right, it used to be a %.

[/ QUOTE ]

Yes, although if your income is high (north of $150K, I think?) they expect 110% of last year's tax burden or 100% of this year's tax burden, whichever is less.
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Old 11-12-2007, 12:33 PM
DespotInExile DespotInExile is offline
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Default Re: do you have to make estimated payments on capital gains?

[ QUOTE ]
[ QUOTE ]
Per Ray Zee, it seems the estimate is based on 100% of last year - that is probably right, it used to be a %.

[/ QUOTE ]

Yes, although if your income is high (north of $150K, I think?) they expect 110% of last year's tax burden or 100% of this year's tax burden, whichever is less.

[/ QUOTE ]

The safe harbor rule you are referring to, in lieu of quarterly payments, is that through withholdings, you must pay 110% of last year's liability, or 90% of actual.
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