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Financial Planning / Tax Strategies


Subject:  99 Taxes!! Date:  8/13/1999  6:27 PM
Author:  nbhat Number:  18154 of 127513

Hi Fools,

I'd reaped captial gains in 98 for which I paid taxes this year. When calculating my taxes TurboTax recommended that I pay taxes in 4 quarters since my withholding was not enough and I ended up paying some taxes. At that time I thought that this year I'll not sell any stock and hence I donot have to pay those quarterly payments.

But I did sell stock this year when the market was at peak and am buying my first home. This was unanticipated and now I face paying penalty for almost 15K in gains (all short term btw nto CSCO stock, that is for long term). I know I can increase my withholding from now to end of year to reduce the tax burden and avoid the penalties. On top of things I now have learned that I will get a hefty bonus and salary hike. How do I deal with this situation to avoid the penalty?
Is there something I am missing?

Any other ideas you can recommend?

Nikhil Bhat
Cisco Systems Inc.
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