Shalom friends,OK, I have reviewed the FAQs and responses to my earlier post (#31213) and would like to know if I understand how this may work in my case.I am a US citizen living and working in Israel. I have no taxable earned income as far the IRS is concerned, and hence, no witholding. You have to be at the top of most scales here in Israel to even approach the limit on excluded income.I have investments that do pay dividends.I can expect to owe the IRS a couple hundred dollars, let's say I will have to send them $400 with my 1999 return.This year (so far) I cashed in one long term investment for a nice profit, say $20,000, and took advantage of a short term opportunity (unFoolish, but satisfying) to the tune of, say $15,000. 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.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.I hope this was not too convoluted to follow. Thanks in advance for your help and advice.All the best,-Menachem
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