Tax penalty because of capital gain?

Question

Hi!
I would like to sell some of my stock.
But if I do, the tax I own, would be more than $1000, so I would have to pay tax penalty.
Now is december but I didn't do any estimated tax, because I didn't know I want to sell the stock.
Q1: What to do now?
Q2: What to do, if I want to sell some of my stock July?
I have to pay the estimated tax for the last two period?

P.S.: I don't want to pay penalty tax!

Thank you!

Answer 1

When I sold stock as a gain I had to pay the quarterly payments in order to not get fined... But you can sell it now and pay by the end day of the 15th... But have your accountant give you that information... but he or she may offer other ways to get around it.. like depending on how much you get back next year.

Answer 2

Go ahead and sell the stock now, and make the 4th quarter estimated payment which is due 1/15/08 to avoid a penalty.

If you sell in July, yes make estimated payments for the last two quarters.

Answer 3

You can compute and pay your estimated tax based on the income for the quarter in which you had the capital gain. Then, when you do your 1040 you should complete Form 2210 using the annualized method.

The annualized method takes into account income fluctuations over the course of the year. The 2210 will show you paid the correct tax each quarter.

Answer 4

If you sold it in the last quarter, there will be no penalty for not making estimated tax payments. Sell your stock and make the tax payment in April. SELL NOW BEFORE THE DEMOCRATS TAKE OFFICE - THEY ARE GOING TO INCREASE THE CAPITAL GAINS TAX RATE. Now is the most opportune time as the tax rate is low.