Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121585  
Subject: Re: safe harbor scenario Date: 3/28/2000 6:29 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<< 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.

TMF ExRO
Phil Marti
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement