Quarterly Income Tax Payments Question

by Tim
(LA)

Quarterly Income Tax Payments

Quarterly Income Tax Payments

I sold a stock in the first quarter of this year and established a long term capital gain.

I have to make a quarterly tax payment on the gain in the first quarter of this year to avoid a penalty when filing my annual taxes.

Can I sell another stock during the first quarter of this year and incur a long term capital loss to offset the gain or must I pay the estimated tax?

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Quarterly Tax Payments

by Tim
(LA)

I sold a stock in the first quarter of 2011 and established a long term capital gain. I have to make a quarterly tax payment on the gain in the first quarter of 2011 to avoid a penalty when filing my 2011 taxes. Can I sell another stock during the first quarter of 2011 and incur a long term capital loss to offset the gain or must I pay the estimated tax?

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Apr 08, 2011
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by: Stephanie

Hello,

Great question, thank you for asking.

Yes, you should be able to sell the additional stock during the first quarter to offset the gain and not have to make the quarterly tax payment.

The quarterly tax payments are usually made in order to account for the total anticipated tax liability at the end of the year.

So, if you still anticipate owing taxes at the end of the year, you may still wish to make a reduced quarterly tax payment so that you are covered and don't incur additional late payment penalties.

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