Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Don Roberts who wrote (276)	4/23/1998 8:48:00 AM
From: Spots	Respond to of 1383

>>Personally, I wouldn't make quarterly contributions or have anything withheld ... Well, it depends on how you like to take your risks, I guess <ggg>. In fact, if you meet one of the several exceptions to the rules (like having paid enough to cover 110% of last year's tax at this year's rates, or whatever the heck the ever changing number is), that's not a bad idea. And sure you might get lucky and lose all your gains in Dec. But if you're not so lucky, and you don't meet an exception, you will pay a penalty on Apr 15. Various strategies have been discussed on this thread. One of the best is to wait until (say) November, at which point you'll probably have a pretty good idea of your tax position, then arrange massive withholding in the last few weeks of the year. The advantage of that is, there's no timely- payment requirement for withholding as there is for estimated payments. Another plan, if that won't work for some reason, is to pay a catch-up payment before Jan 15. That at least minimizes the penalty (which is interest, really). Of course, maybe you would make enough from the money market to pay the interest penalty. If so, PLEASE tell me how to get in on that money market ... <GG>. Of course, that interest would be taxable, and the penalty's not deductible ...