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Posted by ed on May 31, 2007, 12:58 am
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VSLA...@weizmann.weizmann.ac.il (Larry Israel) wrote:
> I have an extesion to file until June 15, so I am not in the
> penalty area. However I just noticed that I had an
> unexpected capital gain in December. I realize that I will
> have to pay interest on my underpayment of estimated tax
> since then, but what form can I fill out to prevent the IRS
> from considering it spread out for the whole year?
If you had based your installments on last year's tax, you
wouldn't owe enything more for a large capital gain anytime
during the year. If your 4 (EQUAL AND ON TIME)installments
plus withholding did not equal last year's tax (110% of last
year's tax if your AGI last year was over $150,000)and you
paid your full tax due on April 15 the penalty will be
.05258 of the underpayment and the IRS will figure it and
send you a bill if it's a significant amount. No form 2210
is needed. See page 2 of form 2210 Short Method.
ed
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