you report capital using form 8949
if you close in 2024 it's reported on your 2024 return
yes Turbotax can handle it since it will be reported the same as a sale of a security
cant say when tax is due, you may need to make an estimated payment for 2024 by January 15, 2025
here are the safe harbor rules to determine whether an estimate would be required to avoid penalties for underpayment of estimated tax. if payment is needed, because payment is occurring in the 4th quarter you'll
need to use the 2210 annualized income installment method. However, maybe you can increase withholding in lieu of estimates. The reason is that an estimate only counts in the quarter made while withholding is presumed to occur evenly each quarter though you're allowed to use actual for each period (not to your benefit in this situation)
There will be no federal penalties for not paying enough taxes during the year if withholding
1) and timely estimated tax payments equal or exceed 90% of your 2024 tax or
2) and timely estimated tax payments equal or exceed 100% of your 2023 tax (110% if your 2023 adjusted gross income was more than $150K) or
3) the balance due after subtracting taxes withheld from 90% of your 2024 tax is less than $1,000 or
4) your total taxes are less than $1,000
The lower of 1 or 2 is your required annual income tax payments. 1 is difficult to know until the year-end so generally option 2 is the safer option. Under the simplified method 25% of the estimated taxes must be paid in each quarter by 4/16, 6/17, 9/16, and 1/15/25. Unless you can show otherwise 25% of your annual withholding is assumed to occur in each quarter.
Failing this and being subject to penalties you can use the annualized installment income method.
This method requires knowing your income and deductions thru 3/31, then 5/31, then 8/31, and finally year-end which should be the same as the tax return. The income is annualized. taxes are computed on the annualized income and then de-annualized. Your tax payments for each period must equal or exceed these amounts to avoid penalties.
if you can increase withholding to meet the minimum payment required each period, then paying the estimates is not required.
form 2210 page 3
https://www.irs.gov/pub/irs-pdf/f2210.pdf
state laws vary
Only rental real estate or real estate use in a trade or business qualifies for 1031. a vacation home that is never rented out does not qualify so you will be taxed but nothing prevents you from using the proceeds to buy rental real estate except you still owe the tax.
the rules to do a 1031 on a vacation home
For properties being relinquished in a 1031 exchange, the owner should:
1) Have owned the property for at least 24-months before you sell it for the exchange.
2) Occupy the property personally no more than 14 days in a calendar year, or no more than 10% of the total amount of days you rent the property out at fair market value (FMV).
30 Within 12-months, rent the property for fair market value for more than 14-days in the calendar year.
assuming the vacation home does not qualify for 1031, you can convert it to rental but I strongly suggest you discuss this with a tax pro. There are fees associated with a 1031 exchange which could easily exceed the taxes you would pay on the gain
