I sold property June of 2023. I'll have a 6 figure tax liability even after the 250k exclusion, cost basis, etc... I'd like to delay paying the tax due to continue earning investment money on it. Self-employed 2022 (no withholding) and made very little money paying only $210 federal, $0 CA (state). The tax code regarding estimated taxes says:
"General rule. The total amount you must pay is the smaller of:
1. 90% of your total expected tax for 2023, or
2. 100% of the total tax shown on your 2022 return. Your 2022 tax return must cover all 12 months."
In California, for 2023, estimated taxes for the 1st 3 quarters is due Oct 16, 2023 due to disaster. Do I have safe harbor and can really pay 100% of my federal 2022 return ($210) and nothing for California by October 16th and not incur a penalty, then pay the huge amount by April 15, 2024? I would like to continue investing that tax liability amout for 6 additional months, but I don't want to incur underpayment penalties or create more risk for audit. Thanks for your thoughts and advice!
