Tax payments for real estate sale

[kleinpaul]

I realized a substantial gain on a real estate sale (vacation property) sold on 6/30/22 that will likely result in a tax bill of over $100,000.  Do I need to make tax payments to the IRS this year or just cover the 110% of last year's taxes?

[LJane29]

You won't be subject to penalties for underpayment if you hit that 110% of last year's taxes in your payments (including withholding) for 2022.  I would highly recommend you check what the requirements for your state are too as they may have underpayment penalties that are different from the federal side.

Also remember that big tax bill will be due April 17th, 2023 so be sure you have the cash ready to pay when the time comes.