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Returning Member
posted Mar 13, 2024 12:05:40 PM

Estimated Taxes - If use Capital Loss to off set Capital Gain, does it need to be within the same quatar?

According to IRS, estimated tax payments are due as follow:

Estimated tax payments are due as follows:

  • January 1 to March 31 – April 15
  • April 1 to May 31 – June 15
  • June 1 to August 31 - September 15
  • September 1 to December 31 – January 15 of the following year

 

In a scenario that I have acquire significant amount of  capital gains  from selling stocks on March 31, but then sell another stock on April 31 that result significant capital losses that can basically offset the gains on March 31. Would I have to pay estimated taxes on April 15? if so, when do I need to incur the capital losses so it can offset my capital gain to avoid paying estimated taxes?

 

 

 

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1 Replies
Expert Alumni
Mar 13, 2024 4:42:36 PM

You wouldn't need to pay estimated tax in the scenario that you mentioned, since the end result would be no gain to tax on the return when you file. 

If you're certain that other factors will limit or eliminate a capital gain, then estimates aren't required, even if the transactions are many months apart.  However, if the loss doesn't come to fruition, you may find that you owe penalties for failing to pre-pay the tax timely.