Estimated Tax payment (1 time land sale)

[JEM123]

Any help would be appreciated. I have called the IRS for what I thought should be a simple process but it’s left me more confused. 

I will soon be selling a piece of land that I’ve owned for several years. A capital gain will be realized and I’ve calculated approximately $8-9 k will be owed. 

I want to make a 1 time payment so I’m ahead of the game come next years taxes. 

I thought I could simply print off an Estimated Tax voucher, send in a check and I’ll be good. 

I don’t and have never paid Estimated Taxes and I’d appreciate if there’s a really simple solution to me wanting to make this one time payment. 

[DoninGA]

The simplest way to pay estimated taxes is to use the IRS payment website with Direct Pay so that the payment is directly debited from your bank account - https://www.irs.gov/payments

[JEM123]

Thanks for reply. I know of the options to pay, but am I doing the right thing? The guy at the IRS made it extremely complicated. Implying I do it over 4 installments which didn’t make sense as it’s a 1 time sale and is happening toward the end of the year. He also implied I could be penalized if it’s not enough etc. I usually get a decent refund so I’m confident even if I underpaid the gain the refund would negate it. 

[DoninGA]

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@JEM123 wrote:

Thanks for reply. I know of the options to pay, but am I doing the right thing? The guy at the IRS made it extremely complicated. Implying I do it over 4 installments which didn’t make sense as it’s a 1 time sale and is happening toward the end of the year. He also implied I could be penalized if it’s not enough etc. I usually get a decent refund so I’m confident even if I underpaid the gain the refund would negate it. 

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The IRS agent was not correct.  You can make a one time estimated tax payment and it will not cause an issue on your tax return.

I did the same thing a few years ago when I sold a property and only used estimated taxes once.

If needed, you can use the IRS form 2210 and the Annualized Income Method so the payment is spread across all 4 quarters of the tax year.

See this TurboTax support FAQ - https://ttlc.intuit.com/community/tax-payments/help/how-do-i-add-form-2210/01/25703