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Paying Capitol Gains taxes must occur when?
If you sell your home before 2 years is up, do you pay your capitol gains with your yearly tax return, or within a certain time period of the sale? (Let's assume that Yes, I do have to pay capitol gains.) :) Thanks!
ps - The last question I asked on here, I chose a best answer and made a thank you comment to the responder. Then, 3 weeks later, Yahoo sends me an email saying to choose a best answer. So, I don't know what the glitch is, but I always choose a best.
3 Answers
- mrreliable3599Lv 79 years agoFavorite Answer
It's just like any other income. If you owe more than $1,000 at tax time next year, you're going to have an underpayment penalty. The tax is pay-as-you-go. If you're going to owe more than $1,000, you need to send in an estimated payment when you sell your house.
- CarVolunteerLv 69 years ago
You pay with your tax return for the year of sale. There is a chance that your tax bill for the year will go up enough that, depending on your other income and withholding, you should send estimated tax payments using form 1040-ES.
- troLv 79 years ago
you report the gain in the year of the sale
there were days 'in olden times' one could delay for two years, but that abandoned eons ago!
