Confused about the amount I'm suppose to pay for California estimated taxes due Oct.16, 2023 (due to disasters). Because of California disastesr, this year we're able to pay1st 3 payments Oct 16, and 4th payment by 1/15/24.
Sold mymain home in July 2023. After deductions, cost basis, etc, the gain is large and according to CA rules, I "must figure estimated tax based on [my] tax for 2023." I assume this to mean "90% of the tax shown on your 2023 tax return" (rather than 100% of 2022 tax return amount). I would prefer to delay as much payment until 4/15/24 to keep the money invested. California expects 30% to be paid in the 1st payment, 40% in 2nd payment, none for 3rd, and 30% on the 4th payment.
For simplicity sake, let's say up until Aug 31, 2022, my CA tax liability is 100k and I estimate by Dec 31,2022 the CA tax liability will be 110k.
For Oct 16, in order to avoid underpayment penalties, can I pay:
1. $69,300 (63% of 2022 liability) by Oct 16, $29,700 by 1/15/24, 10% balance by 4/15/24 (preferred)
2. $90,000 (90% of liability from Jan1-Aug 31) by Oct 16, $9000 by 1/15/24, 10% balance by 4/15/24
3. both of these are wrong and must pay other amounts?
Does option 1 or 2 require me to fill out form FTB 5805 and annualize (don't quite understand if that benefits me in this scenario).
Thanks for your help in advance.
