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Subject:  Re: Estimated Taxes for Mutual Fund Capital Gain Date:  2/6/2001  8:57 PM
Author:  c130king Number:  7550 of 18062

Thanks for the info. I did read the site and it still did not answer my question completely.

I know I do not qualify for the safe harbour in 2001. 2001 income will be approx 70K lower than 2000 (got a big bonus in 2000). Withholding will be a lot lower in 2001 also so the 90% rule also doesn't apply.

I could increase my withholding, but how much? How do I know how much my funds will have in distributions? Also, why give Uncle Sam a free loan by giving extra out of my pay?

Can't I wait until right before the 1st quarterly estimated payment is due and see how much my funds distributed in gains and dividends? If there weren't any I think I don't have to make a payment. If there were then I would make a payment for exactly 28% of the distribution. I could do that again in Jun, Sep and Jan 2002.

I am fairly confident that the withholding from my pay will cover my taxes due to my regular income. I am only worried about large distributions causing a tax problem.

I am pretty sure I can do this plan but my big question is if all the distributions are in Dec do I only have to make the one estimated payment in Jan 2002 and not make the Apr, Jun or Sep payment?

Thanks again,
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