Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I am planning to trim some of my holdings in my taxable account. This will generate a considerable long term capital gains this year.
These gains will be subject to a 15% tax rate. I expect the tax owed will be more than 2 times what was paid last year.
I currently have taxes withheld from my job to cover my normal obligations.
If I do nothing, I would send a very large check to the IRS and state at the time of filing taxes next year.
I do not want to pay any penalties to the IRS. If it was regular income, I know there is a problem owing too much which would result in a penalty.

Is there any difference between regular and long term capital gains?
How does one give the IRS and the state their due and avoid penalties in this situation?

Print the post  


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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.