I have a similar situation. I sold my rental property in December 2022 and TurboTax shows underpayment of tax and calculates penalty on the underpayment. I followed your instructions and ended up with a smaller amount of penalty. However, I'm not sure if I entered the information correctly on Form 2210 for the "annualized income". Does rental income need to be included in each period? The instruction says to include partnership or S-Corp income but my rental is neither. Also, do I need to add the interest income received in my bank account? It is not mentioned in instructions and I only received one 1099 at year end. Do I have to pay estimated tax on the capital gain even though the sale took place in December? Could I ask for waiver of penalty because I would not have owed any taxes otherwise? The instruction seems to indicate IRS grants waiver only if you retire after age 62 or there was some sort of disaster (neither of which applies).
Thank you!
