bandb2
Level 1
04-19-2025
01:09 PM
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Taxpayer's income is IRA RMD and Social Security. RMD has Fed and State withholdings. In March, He sold rental property and realized a gain of $340,000.Factoring Capital Gains, Recapture , and Net Investmant taxes, total is estimated to be $70,000. Can he pay the $70,000 over four quarters or doe he have to pay the entire amount in the first quarter. This is my first time with Safe Harbor Rules.
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IRonMaN
Level 15
04-19-2025
01:25 PM
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Your client just needs to pay in enough to cover his 2024 tax (or 110% if his income was high enough) to avoid penalties. He can pay the remainder of the tax due with the return next year.
Slava Ukraini!
