I sold my stocks Jan-2018 and have a large capital gain.
how to figure & pay 2018 estimated long term capital gain taxes. Can I just do $large-capital-gain x 12% and pay that amount?
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I'm not sure where you came up with that 12% figure. It's not one of the "statutory" long term capital gains rates and if the capital gains are short term then the rates are a lot higher.
You should understand, too, that it's not necessary to pay ALL the tax associated with that January capital gain with the first installment; you can legally and correctly spread that out over the 4 quarterly payments. (Indeed, you may not really have to pay estimated taxes at all, depending on your situation, but that's another conversation.)
I'd recommend that you open up your income tax return and start the "Form W-4 and estimated taxes" interview. In that interview you can put in your best guesses at to what your 2018 income tax return might look like. (TurboTax will show the 2017 figures to help you along.) You can be conservative if you want to, shading up your income, shading down your deductions. TurboTax will come up with some options as to the amount of estimated taxes you could pay and will print out the Forms 1040ES's that you need.
Tom Young
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