I am buying a home in March 2024, and will need to sell a big chunk of my mutual funds in Jan/Feb of 2024, incurring around 180K in long term capital gains (in my tax bracket the long term cap gain tax rate is 15%, so that's 27K in additional federal tax).
Question: can my wife and I simply increase the paycheck withholding significantly at work to make sure they deduct around 27K more for both of us throughout 2024 (so about 2.2K more per month) to avoid paying the underpayment penalty 2024 when we file taxes in 2025?
Or
We must deal with the quarterly pre-payment of taxes, which seems more annoying/painful for me, especially since I would rather not spend any large sums of money in early 2024, as I need to repair/paint/furnish the new home.
