I sold a vacation home in January 2024. Do I pay all the capital gain tax due with my first quarterly estimated payment? Spread it out over the 4 estimated payments? Or can I wait until I file my 2024 taxes next year? Thanks for your reply.

[Vanessa A]

You would pay the capital gain tax in the first quarter.  Estimated taxes are pay as you go.  This means, you pay in the quarter you earn or receive the income.  If you don't pay enough in the quarter, even if you pay enough throughout the year, you can still end up with a penalty. 

[Kaywill]

Thank you! 

[Mike9241]

however, if you want to preserve the cash from the sale there is an option that you can use. If properly followed, there will be no penalties no matter how much you might owe when filing your 2024 return

withholding and timely estimated tax payments for 2024 must equal or exceed 100% of your 2023 tax. the 100% increase to 110% if your adjusted gross income for 2023 was over $150,000.

Keep this in mind. withholding is deemed to occur evenly throughout the year though if need be you can use actual for each payment period. Estimates paid only count if paid on or before the 15th (can be the next business day if the 15th falls on a weekend and certain holidays). of the month following the end of the installment period

put a different pay total payments for each installment period must be 25% (or 27.5% if AGI >$150K) of your 2023 tax. 

the installment periods are:

1/1-3/31

4/1-5/31

6/1-/8/31

9/1-12/31

[Kaywill]

Thank you for your reply!