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Posted by ed on June 14, 2008, 12:02 pm
Please log in for more thread options > On Jun 13, 5:02 pm, derk...@gmail.com wrote:
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> > > The following assums no other income, $75,000 long term capital gain
> > > in the first quarter and $85,000 in the second quarter, a total of
> > > $270,000 state tax paid in the first quarter and too much tax to uses
> > > the "Last years tax safe harbor" Filein married file jointly with only
> > > 2 exemptions (athough as you'llsee this doesn't make any difference).
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> > > The $270,000 State Tax as an itemized deduction actully wipes out all
> > > your regular tax leaving you with only AMT without the benefit of the
> > > $270,000 deduction, or ROUGHLY as follows
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> > > First Quarter LTCG $75,000 annualized * 4 = $300,000, minus only
> > > $7,500 of AMT Exemption leaving taxable AMT of $292,500 of which
> > > $66,100 is taxed at 0% and the remainder of $226,400 taxed at 15% for
> > > amt tax of $33,960 * .225 =$7,641 for the first quarter installment.
> > > You paid $20,000 so no penalty. The second quarter works out to
> > > $13,187 tax for a total cumulative due of $21,458. So you only owe
> > > $1,458 for a second installment.
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> > > ed
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> > Ed, wow!. Turns out that the 75k+85k gains are STCG.
> > Could I just reduce the 15% with 28% and get the
> > numbers I need? Interesting to see that AMT does
> > indeed kick in.
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> > --
> > << ------------------------------------------------------- >>
> > << The foregoing was not intended or written to be used, >>
> > << nor can it used, for the purpose of avoiding penalties >>
> > << that may be imposed upon the taxpayer. >>
> > << >>
> > << The Charter and the Guidelines for submitting posts >>
> > << to this newsgroup as well as our anti-spamming policy >>
> > << are atwww.asktax.org. >>
> > << Copyright (2007) - All rights reserved. >>
> > << ------------------------------------------------------- >>- Hide quoted
text -
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> > - Show quoted text -
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> It's not linier. As short term CG your first installment is $17,640
> and second is $29,169 for total of $46,809, so you owe $26,809 now.
>
> ed
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used, >>
> << nor can it used, for the purpose of avoiding penalties >>
> << that may be imposed upon the taxpayer. >>
> << >>
> << The Charter and the Guidelines for submitting posts >>
> << to this newsgroup as well as our anti-spamming policy >>
> << are atwww.asktax.org. >>
> << Copyright (2007) - All rights reserved. >>
> << ------------------------------------------------------- >>- Hide quoted
text -
>
> - Show quoted text -
Yeah. That spreadsheet is almost as "complex" as an IRS 1040,
Schedule D, Schedule A, form 2210 AI and 6251 combined. For someone
sharp enough to earn over $25K per month trading this market it should
be a piece of cake. After plugging in the presumption that you're
married without children ,under under age 65, and 75,000 into the
first quarter of Schedule D and $160,000 into the second quarter, and
$270,000 into both quarters of line 6 of Schedule A, and that you
already paid a $20,000 installment, the bottom line of form 2210
reads out your remainder due and the detail of the forms it calculated
for you are all available. To recalculate from my initial stab at it
I just moved the $75K and $160K from line 10 of Schedule D to line 3.
The 6251 and 2210 Sched A calculate automatically.
Now, if you want "compliex" try Publication 505 and its Worksheets
manually and they don't even do the AMT. I wish I could steer you to a
simple "estimator" but there aren't any that will do this by quarters
annualized.
You said "I also did not realize that any unused portion of the 270k
deduction
does not roll over to next year. I suppose I should try and "use it
"." Forget it. you totally lose the deductuion for State Tax with
the AMT.
ed
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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