Estimated capital gains filing requirement for the sale of a house

[joknecht]

I sold my house in November of 2023. Do I have to pay estimated federal or state (New York) capital gains taxes by January 15th, or can I include in my regular tax filing prior to April 15th 2024?

[DoninGA]

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).

Gain or Loss = Sales Price minus Sales Expenses minus Adjusted Basis (Purchase Price plus the cost of improvements prior to the sale)

If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported.

Did you have a capital gain on the sale of greater than the exclusion amounts on your personal residence?

[joknecht]

Yes I had a capital gain considerably greater than the exclusion. So I am wondering if I have to file an estimated capital gains tax by Jan 15th or incur a penalty if I wait to file it with my regular return

[Mike9241]

do you have to pay estimated taxes or can you wait until 4/15/2024? we can't see your returns for 2022 and 2023 so here are the rules to avoid penalties for not timely paying in the required amount.

There will be no federal penalties for not paying in enough taxes during the year if withholding and
a) timely estimated tax payments equal or exceed 90% of your 2023 tax or
b) timely estimated tax payments equal or exceed 100% of your 2022 tax (110% if your 2022 adjusted gross income was more than $150K) or
c) the balance due after subtracting taxes withheld from 90% of your 2023 tax is less than $1,000 or
d) your total taxes are less than $1,000

state laws differ

[BillM223]

Note that you do not pay the capital gain tax separately from your income tax. 

"So I am wondering if I have to file an estimated capital gains tax by Jan 15th or incur a penalty if I wait to file it with my regular return"

Go through your entire return which will include any gain on the sale of home (as well as all your other income and deductions), and see if your tax due exceeds the limits that Mike9241 showed above. Then you can decide if you need to make a payment by Jan 15, 2024.

@joknecht