Sold rental property. It will close end of Apr 2021. How to compute and pay withholding for federal and CA taxes this year to avoid penalties next year?
Property purchased 2002 as primary residence but rented it out past 10 years.
01118
1 Replies
npierson7
Level 1
Mar 27, 2021 12:33:12 PM
It depends on two main factors: your gain on sale, don't forget depreciation recapture amount, if any; and your tax bracket. Generally speaking, pay at least 10% of the gain on sale toward federal income tax and 3.5% toward CA income tax.