Taxes due during escrow or year end

[Pandu Chimata]

My Partner and I purchased the property in 2016. After renovating it we rented the property for one year. Now it is in escrow and expected to close in May. 

We made some profit in this transaction. Would I be declaring all expenses during the escrow time and then paying the taxes at that time or during the year end tax time?

[Ashish Acharya]

@Pandu Chimata ,

The gain on the sale of the property is not taxed until your 2018 taxes are due in 2019, but if you made a significant profit, you might want to ensure that your W-2 withholding, if you have a regular job, is enough to cover the extra taxes you owe on the profit or make estimated payments so that you dont pay any penalties for underpayment of taxes you owe when you file your taxes 2019.