I bought a house last year, paying $200k by cashing out some of my Apple stock. I am concerned about the taxes that I will owe on this money. To be blunt, I don't have cash available to pay the taxes on this unless I take out a personal loan or maybe borrow against my IRA/401k. Is there anybody I should speak with about this before I see my tax preparer this year? And how do I set up a payment plan with the IRS?
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1. No, the stock is cashed and will be reported on your tax return. On the bright side, only the gain is taxable, not the full amount. If you held the stock longer than one year, the capital gains tax is lower than your regular tax rate.
2. The IRS allows you to set up a payment plan. When you file your return with TurboTax, select that you will mail the payment. This choice does not go to the IRS, it just lets you file your return without a payment. In reality, you will go to Find details on payment plan types and select what works for you. Make a payment each month so you don't go into default while the IRS is processing your request.
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