I sold my rental property in February 2020 at a large gain. Do I need to make a estimated tax payment for 1st quarter 2020? Do I pay it all in the 1st quarter or prorate it over the 4 quarters. How do I calculate the estimated tax using the turbo tax and what forms do I need to file with the IRS?
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Yes, you can calculate your 2020 estimated taxes and generate the payment vouchers (1040-ES) in TurboTax by doing following these steps:
Yes, you can calculate your 2020 estimated taxes and generate the payment vouchers (1040-ES) in TurboTax by doing following these steps:
From where (with my 2019 tax return open [it's also filed already]) does one "Search for 1040-es"?
No 1040-es form was generated in list of FORMS IN MY RETURN. Once I learn from you, then, how do I "Jump to link"?
Please, and thank you.
If you just send the IRS 20% of your taxable gain then come tax filing time you'll be fine.
Do I spread the payment out over 4 quarters?
No. If you make $20,000 in the first quarter, you send the IRS 20% ($4,000) in the first quarter.
Then what do I do with the other 3 vouchers?
If you anticipate no gains in the 2nd, 3rd and 4th quarter, you can throw them away.
Carl, all of the accumulated Rental Property data through 31 Dec 2019 is contained in my 2019 turbotax Premier. I need my program to finalize and close out the 2020 rental property and figure what the taxable gain actually is, figuring everything, including depreciation, etc.. Then I can pay the IRS what's due utilizing the appropriate voucher. HELP!
Please, and thank you!
HOPEFULLY you used the 2019 downloaded version and not the online version which will be much more difficult to compute ... so which did you use ?
Download / Thumbstick. Thank you.
Wonderful ... let me educate you on something you may not know about that superior program ... using the TEST option you can SELL the rental and adjust your other income to see approximately what your balance due will be in 2020 ....
This is my mini version of a tutorial that should be in the downloaded program:
Forms Mode lets you view and make changes to your tax forms "behind the scenes."
If you're adventurous, you can even prepare your return in Forms Mode, but we don't recommend it. You may miss obscure credits and deductions you qualify for, and you may forget to report things that will come back and haunt you later.
Forms Mode is exclusively available in the TurboTax CD/Download software. It is not available in TurboTax Online.
If you want to play around with different figures and tax scenarios without affecting your original return you can ….
It's always a good idea to make a backup copy of your tax data file, in case your original gets lost or corrupted. Here's how:
If you make changes to your original tax return file, repeat these steps to ensure your original and backup copies are in-synch.
AND save it as a PDF so you have access to a copy even if you don’t have the program still installed and operational :
AND protect the files :
Perfect! You're a Saint! Exactly what I need! I will work this. Thank you.
Ok, I am in my own TEST Form WHAT-IF Worksheet. Here is what I am supposed to do:
Step 1: Copy column 1 into column 2 and Check box to use 2020 tax rates. Right?
Ok, so far, column 2 is my Plan 1 for 2020. Simply adjusted for age and new tax rates. Now I need the make the changes.
Step 2: Enter the information right into the form (What-If Worksheet), right? NO. I cannot until the program calculates the new, What-If "Plan 1 2020" information; and, wouldn't the program enter the results in column 2 anyway???
Step 3: Click on Step-by-Step to enter the specifics (so I am supposed to change the 2019 amounts in Schedule C, and activate the new forms for Sale of Rental)… then it calculates all the 2020 Rental Property and Sale in this TEST Return???
Yes I have the original 2019 filed and backed up.
Please, and thank you for your help!
Use the test option first ... sell off the property to see what the bottom line is going to be for the sale. You can stop there if you like ... the bottom line will be close enough ... OR you can use that info in the What If option so you can get the 2020 rates.
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