- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
I think my situation is a little different. I sold a rental house in May 2022 and paid a lot more than usual for taxes that year. I made sure to prepay 100 percent of the tax I'd paid in 2021 to avoid a penalty.
Now I've sold a second rental in August 2023 and will owe a lot more tax than usual this year, too. (But slightly less than 2022, because the house was worth less.) I kept up with quarterly payments due on 15 April and 15 June, based on what I thought my income would be for 2023. Then the sale of the house changed that.
I'll now be using the annualized income installment method for 2023. Since my taxes were so high last year, I believe I do have to pay the full amount of tax I now owe from I Jan. through 31 Aug., which includes tax due from the sale of the rental. Is that right?
Thank you.