you have another surprise coming. you will get with the 2023 tax package a supplemental sales schedule that will show your cost (tax basis). so far easy. gain = sales price - cost. however the gain consists of two portions ordinary income and capital gain. there will be on the supplement a column labeled gain subject to recapture as ordinary income (column 7). I had this and was shocked that the ordinary income recapture exceed the sum total of the non-deductible passive losses over the years.
so capital gain would be sales price (column 3) less the sum of cost basis (column 6) + ordinary gain (column 7)
the ordinary gain portion is reported through the k-1 disposition section. the column 7 amount is also reported on the k-1 line 20AB at least in 2022. you are also supposed to file the 751 statement with your return which would require mailing it in.
as to 2023 estimates. here are the options to avoid penalties for underestimation of estimated tax payments.
There will be no federal penalties for not prepaying enough taxes during the year if withholding and
a) timely estimated tax payments equal or exceed 90% of your 2023 tax or
b) timely estimated tax payments equal or exceed 100% of your 2022 tax (110% if your 2022 adjusted gross income was more than $150K) or
c) the balance due after subtracting taxes withheld from 90% of your 2023 tax is less than $1,000 or
d) your total taxes are less than $1,000
state laws differ
i would suggest option 2 because once you finalize that return you know the total you have to prepay. 90% of 2023 requires guessing especially that surprise you'll encounter. the ordinary income I had to report was twice the cumulative passive losses. it's section 751 recapture
