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If this year I paid 100% of the estimated taxes I paid last year, can I be penalized if my income (due to a capital gain)in 1998 is a great deal higher than in 1997? I knew of and expected this capital gain, as it arises from a planned sale of shares in a family company, but by paying so much less I was able to make use of and invest the money until April 1999. However, I read the Fool tax FAQ and it said that if the amount underpaid exceeds $1,000, penalties still apply. Did I understand that correctly?
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