2nd home sale how and when to pay tax

Forum|Forum|3 years ago
November 16, 2022
1 reply
15 views

We recently sold a vacation home (occasional rental property) we owned for just over two years. I think I have calculated the tax due - price received less purchase price.

Question in 3 parts:

- We sold on Oct 31, when do I need to pay the estimated tax by?

- How do I pay it (would prefer to wire transfer than mail a check if possible)?

- Are there any other deductions we should take on top of the original purchase price, maybe improvements?

Donna F 77

Level 6

Congratulations on selling your vacation home! The next estimated tax payment is due on January 17, 2023. You do not need to mail a check. You can pay online on the IRS website. Here's the link for making payments with IRS:

https://www.irs.gov/payments

Here is additional information on figuring the amount of tax that you owe:

https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

To calculate the gain on the sale, you can add the cost of improvements to the basis. Sales Price - Cost Basis = Gain/Loss on Sale of Home

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