Want to prepay my capital gains taxes on a rental being sold. How to calculate and get vouchers? Is the tax based on the property location or my residence?

[noway8]

need an answer to my questions

[Carl]

Want to prepay my capital gains taxes on a rental being sold. How to calculate and get vouchers?

Your tax liability depends on your AGI, and what that AGI will be after the sale. But basically, if you send the IRS 20% of the gain you make on the sale then come tax filing time you'll be fine. May even end up getting some of it refunded.

You don't need vouchers. You can pay your projected tax liability online any time you like, directly to the IRS at www.irs.gov/payments. Remember to print your receipt when done and file it with your 2021 tax papers so you'll have it at tax filing time.

If your state also taxes personal income, then you should pre-pay your state taxes by whatever method is best for you, that your state supports. Not all states support online payment. As for how much you should pay your state, I recommend a percentage equal to the highest tax rate of your state. To the best of my knowledge at this time, California has the highest state taxes at 8.25%

Is the tax based on the property location or my residence?

Neither. It's based on your AGI which includes all realized gain on the sale.

[Hal_Al]

Q. Is the tax based on the property location or my residence?

A. Simple answer:  property location.

In actuality, the capital gain must be reported on the tax returns for  both states, your residence state and the state where the property is located.  But your residence state will give you a credit, or partial credit, for the tax you pay to the location state.  So, for purposes of advance (quarterly) estimated taxes, you only need to remit to the location state.