Investors & landlords

TurboTax will calculate the unrecaptured Section 1250 gain for you. That portion of the gain is taxed at ordinary income tax rates up to a maximum of 25%.

 

You can make an estimated payment (or payments), but you can avoid a penalty if you do not make estimated payments if:

 

  • Your filed tax return shows you owe less than $1,000 or
  • You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year (110% of prior year tax if the prior year's AGI was over $150.000), whichever amount is less.

 

See https://www.irs.gov/payments/underpayment-of-estimated-tax-by-individuals-penalty

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