Carl
Level 15

Investors & landlords

If you send the IRS 20% of whatever your taxable gain is, then you'll be fine come tax filing time. More than likely, you'll get some of that money back in a refund since it's passive income, and not self-employment income subject to the 15.3% SE tax. Depending on your gain, that "may" bump you into the 22% tax bracket, assuming you're in the 12% tax bracket before the gain.

You can pay the IRS directly on line at www.irs.gov/payments. Remember to print your receipt and file it with your 2022 tax information.

If your state also taxes personal income, then you may want to go ahead and pay your state too, and whatever their highest tax rate is. Different states deal with this situation differently, as not all of them assess penalties for underpayment, so long as you pay it at tax filing time. Presently to the best of my knowledge, the highest state tax rate is 13.3% in California, from what I see with a quick google search.