Estimated taxes for partner?

Either I or "the tax lady" have misread the question. My take is that you want to know how to annualize the income coming from the partnership to the individual.

The problem you face is that without access to the partnership's books, no matter what method you choose, there is a strong probability that you won't get it right. I believe the IRS would prefer that you use the same percentages for each period as the months (1st qtr: 3/12; 2nd qtr: 2/12; 3rd qtr: 3/12; 4th qtr: 4/12) but there is no factual basis to say that the amounts would be correct.

The places I've worked view the business numbers on the K-1 like a shopping cart at the store. Nothing is final until you go through the checkout line, meaning that the ordinary income is applied to the fourth quarter. After all, some partnerships review the year-to-date amounts late in the year and make adjustments to get to the final amount they want (pay bonuses, defer expenses, accelerate A/R collections for cash basis entities, etc.). It depends on the underlying business. Retail stores frequently operate in the red until the big Christmas season.

I've never had the IRS or a state agency question the annualization method. They frequently miss the annualization calculation but a letter with the full Form 2210 and any schedules, has always gotten them to accept the lower underpayment amount.

I hope this helps.

Gary

if I understand the statement correctly the person has a K1 each year, which he probably has some idea of the amount he will pay and has been computing his quarterly payments already for this income

and now he personally sold something that will result in a capital gain on his personal return?

if this capital gain is within the partnership, he really can't do anything about it until he gets his K 1 unless he is fully aware of the amount of the capital gain--apparently not one of the general partners

since there are only two vouchers left to be submitted it would seem to me that he is going to have to include his regular calculation and the amount he anticipates this capital gain will cost him for his taxes on these final two

it is a little late to annualize

but I haven't read your reference

Same as it would be for an individual on an annualized basis--since the income flows through to the same return.

Let me guess, you don't even know the form number.