topic Capital Gains in Investors & landlords

Capital Gains

lsinnock — Fri, 05 Mar 2021 00:08:35 GMT

If I have a large capital gain from a stock trade during the year, do I have to pay taxes immediatly?

VolvoGirl — Fri, 05 Mar 2021 00:14:53 GMT

Yes you should send in an estimated payment so you don't owe too much on your tax return or get hit with a penalty.

Here are the 1040ES instructions and blank forms (where to mail is on page 4)
https://www.irs.gov/pub/irs-pdf/f1040es.pdf

Or you can pay on the IRS website. Be sure to pick 2021 1040ES payment
https://www.irs.gov/payments

fanfare — Fri, 05 Mar 2021 02:06:52 GMT

if your estimated payments + withholding is at least 110% of your tax due last year, that's all you have to put in to avoid penalty.

It won't matter how large your gain was.

OF COURSE, then you will pay the whole tax on the big gain on April 15th.