Quarterly taxes if no annual tax due

[252056]

I plan to sell appreciated stocks and incur capital gains tax in December. If I also make a charitable donation in December (with tax deduction equal to my calculated capital gains tax) do I still have to pay quarterly taxes for Q4?

In other words, do I owe quarterly taxes if I do not expect to owe annual taxes in April?

[Bsch4477]

No, no need to pay an estimated tax based on what you posted. 

[NCperson]

@252056 no, but I would model it out as you may have assumed something that won't occur. 

For example,  assume the tax on the capital gains is $15,000 and you file Single.  If you are in the 22% tax bracket that would imply a charitable contribution of $68,000 to create a tax deduction that reduces taxes by $15,000.

Deductions do not reduce taxes dollar for dollar.  Only tax credits can do that. 

[252056]

Thanks for your responses.

Marginal tax rate 35%, filing jointly.

Charitable donation 150k approx 38-42k tax deduction per different calculators.

So theoretically this could neutralize $200k of federal capital gains tax right?

(15% LTCG + 3.8% NIIT x 200k = $37,600 capital gains tax)

[NCperson]

@252056 yeah, the math should work

Are you at least 73 years old?  try the math by doing a QCD. 

[252056]

Under 73, planning to start a donor advised fund.