Quick tax question here. I bought a house 18 months ago for $132k. I'm now selling it at $275k. I'm expecting about $100k in profit. This will create a substantial tax debt. I've been talking to my CPA about tax implications. He recommends that I do a tax projection to make quarterly payments for Q3 and Q4. It's going to cost about $300. Does anybody else make quarterly tax payments? Is it worth paying your CPA to do a tax projection? Thanks!
@David McCracken you could have underpayment penalties if you don’t make estimated tax payments. Not sure what that’d be but either you’re going to pay your CPA or the IRS. And if you don’t pay your entire tax by 4/15 there’s even more penalties and interest. Some clients believe they can make more money than what the penalties are. It’s really up to your risk threshold.
@Dominick Austria could you fill me in on what underpayment penalties to expect? I'll definitely pay my entire taxes by April 2020.
@David McCracken I don't know your numbers and your situation so I can't give you a number. However, I believe the rate is up to 6% now. You calculate it quarterly.
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