SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Pravin Kamdar who wrote (105819)4/15/2000 2:25:00 AM
From: Joe NYC  Read Replies (2) of 1572199
 
Pravin,

Generally you have to make a reasonable estimate so that by the end of the year your estimated payments roughly equal your tax liability. If you expect to realize $250,000 in gains in the following 3 quarters, than you probably should make the estimated payment.

But actually, in your case, you may not have to pay any esimated taxes. I thing you should read the part of the tax code about underpayment penalties.

The rule used to be that to avoid penalties, you need to pay either of:
100% of your previous year tax liability
or
90% of your current year tax liability

Since your previous year liability was $0, than I guess you don't have to pay any estimated taxes, since 100% of $0 is $0.

But there were a lot of changes in the way the underpayment penalties are calculated, so I am not sure if what I described is still accurate.

Joe
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News