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

To: Dan O. who wrote (485)	9/8/1998 11:10:00 PM
From: Kaye Thomas	Read Replies (3) \| Respond to of 1383

I pay quarterly. 110% of last year. I just sold a bunch of small caps and plan on buying back later, but I've wiped out some of my reportable gains for the year. I would like to "contribute" less this 9/15. The procedure? Just cross out the number on my 1040 ES and write X? Please say it's that simple. Yes, it's that simple. You don't have to explain why you're paying a different amount in September. Of course, if you hit a home run in the fourth quarter you could have a third quarter underpayment unless you go through the complicated process of allocating your income and deductions by quarters. Then again, you have a little cushion if you've been paying based on 110% of last year's tax, not realizing that the safe harbor this year (and only this year) is 100%, regardless of income level! Three quick comments: 1. Check my site before buying back if you don't know the wash sale rule. 2. There's a guide to estimated tax on my web site. 3. I hope you didn't lose your opportunity to buy back in today's rally! Kaye Thomas, author Fairmark Press Tax Guide for Investors fairmark.com