When to to File the Sale of Vacant Land With the IRS?

[phlopez06]

I have just sold vacant lands I owned for around 10 years. Should the gain be declared this year to IRS in the upcoming weeks to avoid any penalties or can I wait next year to file the sale?

[DoninGA]

The property was sold in 2022 so the sale is reported on your 2022 tax return that you file next year.

[SweetieJean]

I think OP is asking about making estimated tax payments.

[tagteam]

In most cases, you must pay estimated tax for 2022 if both of the following apply.

1. You expect to owe at least $1,000 in tax for 2022 after subtracting your withholding and tax credits.

2. You expect your withholding and tax credits to be less than the smaller of:

   1. 90% of the tax to be shown on your 2022 tax return, or

   2. 100% of the tax shown on your 2021 tax return. Your 2021 tax return must cover all 12 months.