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http://boards.fool.com/penalty-for-underpayment-due-to-capital-gains-11396449.aspx
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| Subject: Penalty for underpayment due to capital gains | Date: 10/20/1999 2:34 PM | |
| Author: troyman | Number: 19874 of 118719 | |
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I am concerned about the possibility of being required to pay penalties for underpayment of Federal Taxes for this year (1999) due to significant short term capital gains. Here's the situation: Last year (1998) Wages: $70k (fairly level throughout the year) Capital Gains: $20k (mostly long term) Taxes Owed: $606 (made some large end of year additional withholding payments) This year (1999) Estimated Wages: $85k (fairly level throughout the year) Short Term Capital Gains: $88k (not a very Foolish investor, but lucky nevertheless with initial investment of $60,000) Distribution of 1999 Short Term Gains Apr: $10K (Long on I2 Technologies) May: $4K Jul: $60K (Long on Oracle $30K (bought in mid 20s) then Oracle Calls for another $30K) Sep: $7K Oct: $7K Questions: 1) Was I suppose to pay taxes on the capital gains as they were realized. I had assumed that I could wait until the end of the year, since I could have losses that would offset the gains. 2) If I pay 105% of the taxes that I paid in 1998, then have I found a Safe Harbor? |
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