Are unexpected capital gains subject to penalty?

jaruss37 · ‎March 6, 2026

We thought there would be enough losses to offset gains, but this didn't happen.

M-MTax · ‎March 6, 2026

Are unexpected capital gains subject to penalty?

Yes, they are, unfortunately, if you didn't have sufficient withholding or pay estimated tax during the tax year.

There is a safe harbor, though, if your total withholding/tax credits cover 90% of your 2025 tax or 100% of your 2024 tax (110% If your 2024 AGI was over $150k).

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M-MTax · ‎March 6, 2026

Are unexpected capital gains subject to penalty?

Yes, they are, unfortunately, if you didn't have sufficient withholding or pay estimated tax during the tax year.

There is a safe harbor, though, if your total withholding/tax credits cover 90% of your 2025 tax or 100% of your 2024 tax (110% If your 2024 AGI was over $150k).