@JEM123 wrote:
Thanks for reply. I know of the options to pay, but am I doing the right thing? The guy at the IRS made it extremely complicated. Implying I do it over 4 installments which didn’t make sense as it’s a 1 time sale and is happening toward the end of the year. He also implied I could be penalized if it’s not enough etc. I usually get a decent refund so I’m confident even if I underpaid the gain the refund would negate it.
The IRS agent was not correct. You can make a one time estimated tax payment and it will not cause an issue on your tax return.
I did the same thing a few years ago when I sold a property and only used estimated taxes once.
If needed, you can use the IRS form 2210 and the Annualized Income Method so the payment is spread across all 4 quarters of the tax year.
See this TurboTax support FAQ - https://ttlc.intuit.com/community/tax-payments/help/how-do-i-add-form-2210/01/25703
