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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Pravin Kamdar who wrote (105819)	4/15/2000 2:25:00 AM
From: Joe NYC	Read Replies (2) \| Respond to of 1572159

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

To: Pravin Kamdar who wrote (105819)	4/15/2000 3:27:00 AM
From: SteveC	Read Replies (1) \| Respond to of 1572159

I am in the same situation, only one year earlier, so I have to pay estimated taxes this year, but didn't have to last year. Turbo tax is correct.

To: Pravin Kamdar who wrote (105819)	4/15/2000 8:52:00 AM
From: xun	Read Replies (1) \| Respond to of 1572159

Pravin, Based on my read of the tax code, you don't have to pay estimated tax if your 99 return is about even. I have the similar situation except that I have 99 tax liability of $4k. My year to date short term gain far exceeds the entire year of 99. I only need to pay them $1k a quarter for the capital gain to match last year's liability level. But I am going to cut a bigger check for this year's estimated tax because I don't want to write a huge check this time next year. Sorry I forget where I read the tax code. You may go to ETrade home page. Their knowledge center has a lot of info on capital gain taxes. panic