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Level 2
August 14, 2025
Question

estimated taxes on one time capital gain

  • August 14, 2025
  • 4 replies
  • 71 views

I have read the different posts on this and still am not clear on what to with estimated tax payments to avoid a penalty in 2025. I am making the 4 regular and equal 2025 payments based on the 100% rule for last year's - 2024 taxes.  At the end of August I will receive the proceeds and capital gains on the sale of a rental property. So my question is should I boost my September 15th estimated tax payment to reflect the estimated incremental taxes of about $20K on this gain? 

    4 replies

    VolvoGirl
    Level 15
    August 14, 2025

    Yes that would work.  You can just cross out the amount on the 1040ES and write in a new amount or pay the IRS directly online.  

    fanfare
    Level 15
    August 14, 2025

    If your AGI was less than $150,000, and by Jan15 2026 you will have paid in last year's tax as you say (equal payments), you won't get a penalty.

    You may pay more estimated tax only to reduce the amount due on April 15th.

     

    @bill Pohl 

    bill PohlAuthor
    Level 2
    August 15, 2025

    Our 2025 AGI will be more than $150K due to the rental property sale. Does that affect this?