Do normal estimated tax rules still apply even in a tax year where a large capital gain occurs on a house sale?
Specifically, if I've met the normal estimated tax rules based on previous years' taxes owed, can I wait until tax filing to pay the large capital gains tax from the sale.
02252
1 Best answer
LeonardS
Expert Alumni
Apr 15, 2022 8:47:09 AM
Yes, if you paid at least 90% of the tax you owe for the current year or 100% of the tax you owed for the previous tax year, the IRS will not charge you an underpayment penalty.
2 Replies
LeonardS
Expert Alumni
Apr 15, 2022 8:47:09 AM
Yes, if you paid at least 90% of the tax you owe for the current year or 100% of the tax you owed for the previous tax year, the IRS will not charge you an underpayment penalty.