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woolyback
New Member

Do I need to recalculate my estimated taxes to reflect the sale of the home, sold after I had made my 3rd estimated payment?

I have been paying my estimated tax payments at the proper intervals, however after I paid my 3rd one this year I unexpectedly had to sell a second home.   It did sell at a loss but I don't know if I should have to re-calculate my 4th estimated payment to include the sale of the house. 

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Accepted Solutions
Hal_Al
Level 15

Do I need to recalculate my estimated taxes to reflect the sale of the home, sold after I had made my 3rd estimated payment?

TurboTax (TT) can prepare the revised 4th quarter payment voucher. In your 2016 software, enter at:

Federal Taxes or Personal (H&B version)

Other Tax Situations

Other Tax Forms

Form W-4 and Estimated Taxes - Click the Start or Update button

 

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7 Replies
VolvoGirl
Level 15

Do I need to recalculate my estimated taxes to reflect the sale of the home, sold after I had made my 3rd estimated payment?

Was it a rental?  Or use it as a home office?  Take any depreciation on it?  You have to recapture any depreciation so it may not show as a loss for taxes.
Hal_Al
Level 15

Do I need to recalculate my estimated taxes to reflect the sale of the home, sold after I had made my 3rd estimated payment?

For most people, the sale of your principal residence is not taxable. To get this tax break, you must have lived in the home 2 out of the last 5 years and your profit less than $250,000 ($500K married)
VolvoGirl
Level 15

Do I need to recalculate my estimated taxes to reflect the sale of the home, sold after I had made my 3rd estimated payment?

He said it was a second home.
woolyback
New Member

Do I need to recalculate my estimated taxes to reflect the sale of the home, sold after I had made my 3rd estimated payment?

The home that was sold was a vacation home,  so I'm pretty sure it is looked at as just plain income.  What I'm not clear on is do I still have to report it as income even though it was sold at a loss.
Hal_Al
Level 15

Do I need to recalculate my estimated taxes to reflect the sale of the home, sold after I had made my 3rd estimated payment?

No, it's not just ordinary income ("plain income"). It would be a long term capital gain, if sold for a profit, and subject to lower tax rates.
 A loss on the sale of personal use property is not deductible. So, there will be no effect on your taxes this year.  You do NOT need to adjust your estimated payments. You don't even need to report the sale, on your taxes, unless you get a form 1099-S form the closing agent (check your closing documents)
woolyback
New Member

Do I need to recalculate my estimated taxes to reflect the sale of the home, sold after I had made my 3rd estimated payment?

Thanks Hal_Al,  that is good to know,   I will check for that 1099-S form .
Hal_Al
Level 15

Do I need to recalculate my estimated taxes to reflect the sale of the home, sold after I had made my 3rd estimated payment?

TurboTax (TT) can prepare the revised 4th quarter payment voucher. In your 2016 software, enter at:

Federal Taxes or Personal (H&B version)

Other Tax Situations

Other Tax Forms

Form W-4 and Estimated Taxes - Click the Start or Update button

 

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