I sold my rental property this year do I need to pay estimated tax now or do I wait until I file my 2017 taxes?

[parkguth]

I sold my rental property in Colorado in April 2017 for a profit. I plan on putting the proceeds into a primary residence.  I purchased the rental property in 2003 as a primary residence but have only lived in it for 2 years during that time and only 1 year in the last 5 years.  I expect to pay capital gains tax but not sure if I need to pay any estimated taxes now or wait until I file my 2017 taxes next year.

[Carl]

If you're not sure, pay it. Generally, if what you owe at tax filing time exceeds 10% of your tax liability, then underpayment penalties are assessed. So play it safe and just pay an estimated tax. If you overpay (which I recommend) then you'll get the overpayment back in the form of a tax refund when you file.

[TomYoung]

If you've been tracking the rental in TurboTax and have been using a desktop version, then open up your 2016 income tax return, save it immediately using a different name, e.g. add "Rental Sale" to the original name, and "sell" the rental in your 2016 income tax return.  While you're in there you can make any other material changes that you know of - big salary increase?, inherited money and put it in dividend paying stocks?, something else? - and see if you're assessed a penalty.  If not you're probably OK.  If you are assessed a penalty you could either increase withholding for the balance of the year, or make estimated tax payments.