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Francia3000
Level 1

If I sell real estate property in March ... should I plan on paying all capital gain taxes as estimated ones this year? And should the first payment be larger? Thanks!

 
4 Replies
DavidD66
Expert Alumni

If I sell real estate property in March ... should I plan on paying all capital gain taxes as estimated ones this year? And should the first payment be larger? Thanks!

If you realized a capital gain on the sale of your real estate, you would be wise to make estimated tax payments.  I recommend you pay 100% of the capital gain with the first quarter payment so that the payment is for the same quarter that the gain occurred.  The first quarter due date is due April 15.  The remaining estimated tax due dates are June 15, September 15, and January 18.

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Francia3000
Level 1

If I sell real estate property in March ... should I plan on paying all capital gain taxes as estimated ones this year? And should the first payment be larger? Thanks!

Thanks, David, for the reply. Here's a quick follow up question, if I may: why not spread the estimated payments throughout the year?

Irene2805
Expert Alumni

If I sell real estate property in March ... should I plan on paying all capital gain taxes as estimated ones this year? And should the first payment be larger? Thanks!

Yes - You can do that.  DavidD66's thinking was to make a larger payment in the quarter you receive the income.  But you certainly can spread the estimated payments throughout the year.  It will all get reconciled on your 2021 return.

Francia3000
Level 1

If I sell real estate property in March ... should I plan on paying all capital gain taxes as estimated ones this year? And should the first payment be larger? Thanks!

Thank you, Irene!

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