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<< As I understand things about estimated taxes and the safe harbor provision, even though I have NO witheld taxes, I can send, with my 1999 return and payment, an ES form and payment equal to my 1999 tax payment and defer all the rest until next year when I send in next year's return, without incurring any penalty at all.

Please confirm, or correct me if am wrong. >>

As long as your 1999 AGI was under $150,000 yes. Actually, you only have to send 1/4 of the 1999 tax as a 4/15 year 2000 estimated tax payment. You can send the rest on the three other due dates.

<< Further, (just a speculation here, but please, again, confirm or correct) if I were to arrange my profit taking so as to only only have serious income every other year, I could continue to take advantage of this provision in my profit-taking years, since my tax in the odd years would be minimal. >>

Right. You would make minimal ES payments in the years that you are taking profits and pay the full balance with your return (as long as it's under $1,000) in the years you don't.

Phil Marti
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