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To: R. Ramesh who wrote (6565)	5/27/1999 9:52:00 PM
From: Scott Overholser	Read Replies (2) \| Respond to of 17183

>>If you sell a stock for profit do you have to pay the taxes immediately<< are you living in united states? if so, the answer is this: you must pay taxes when you are required to file your tax return. taxes on capital gains taken today must be paid no later than april 15, 2000. of course, the irs would like you to make scheduled payments over the year - there is a form for doing that. if you have underpaid by too much at filing time you may find yourself facing a penalty. that's the catch. pay now or pay later and face the penalty if it applies. personally, i'd rather put the money to use and pay the taxes at the last possible moment. i've paid penalties before - they've been small compared to the gains on the tax money i've held back. your situation may be different. please don't substitute my rambling for the advice of a tax professional (which i am not.)

To: R. Ramesh who wrote (6565)	5/28/1999 9:36:00 AM
From: TraderEd	Read Replies (1) \| Respond to of 17183

Scott's answer was correct and is in fact, the methodology I use. However, theoretically, you are supposed to file estimated taxes every quarter on the money you made that quarter. Traders, in my nonprofessional opinion, are wise to wait till later in the year when their overall profit picture for the year is more clear. No point paying estimated taxes on gains made early in the year if later you have some losses to offset them. It is all part of money management and I make it a practice, and a goal, never to be in a position where I get a refund from my tax payments. I want to owe them rather than the other way around. As Scott said, discuss the situation with you tax preparer or a CPA. I am in no position to give tax advice. The above is just what I do.