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Message
Tax advice: large capital gain
Posted on 10/8/25 at 1:40 pm
Posted on 10/8/25 at 1:40 pm
Recently sold about 100k in investments to prepare for some large purchases in a couple months (down payment on house, and a new car since mine decided it’s getting tired of living)
According to my fidelity app, I have a short term gain of around $24k, and a long term gain of around $30k.
Now my question is, will I need to pay estimated taxes now/soon in 2025, or wait until next April? I looked at a “tax calculator” website that says I don’t, but the actual IRS website makes it seem like I will owe a penalty if I wait until tax time. Anyone know?
According to my fidelity app, I have a short term gain of around $24k, and a long term gain of around $30k.
Now my question is, will I need to pay estimated taxes now/soon in 2025, or wait until next April? I looked at a “tax calculator” website that says I don’t, but the actual IRS website makes it seem like I will owe a penalty if I wait until tax time. Anyone know?
6
Posted on 10/8/25 at 1:46 pm to DB_tiger
$54K in taxes on $100K of sales?
Is a lot of that state income tax? That seems to be a lot. You should not owe more than $20K on $100K of long term captial gains assets...
Is a lot of that state income tax? That seems to be a lot. You should not owe more than $20K on $100K of long term captial gains assets...
Posted on 10/8/25 at 1:49 pm to DB_tiger
You pay your realized capital gain tax at tax time
ETA:
ETA:
quote:
The holding period. The length of time you held the stock determines whether the gain is classified as short-term or long-term. This classification affects your tax rate.
Short-term gains: For stock held one year or less, your profit is taxed at your ordinary income tax rate, which is the same rate as your wages.
Long-term gains: For stock held for more than one year, your profit is taxed at a more favorable long-term capital gains tax rate, which is typically lower than the ordinary income rate.
This post was edited on 10/8/25 at 1:50 pm
Posted on 10/8/25 at 2:01 pm to Jax-Tiger
quote:
$54K in taxes on $100K of sales?
Those are his gains that he will be taxed on. So he will probably owe about $13,500 depending on his income.
Posted on 10/8/25 at 2:13 pm to RedHawk
quote:
Those are his gains that he will be taxed on.
You're right. I misread it.
This post was edited on 10/8/25 at 2:15 pm
Posted on 10/8/25 at 2:18 pm to DB_tiger
You won’t get penalized if you pay
1) 100% of your 2024 total tax liability (110% if your AGI is over 150k)
OR
2) 90% of your 2025 tax liability that is calculated on your 2025 1040.
Figure out what the answer to 1) is and make sure you pay that much in estimated taxes including any w2 withholding.
Then do your taxes in the spring and pay any remaining balance with the money you set aside from the proceeds to cover your taxes.
Don’t give the govt money early.
1) 100% of your 2024 total tax liability (110% if your AGI is over 150k)
OR
2) 90% of your 2025 tax liability that is calculated on your 2025 1040.
Figure out what the answer to 1) is and make sure you pay that much in estimated taxes including any w2 withholding.
Then do your taxes in the spring and pay any remaining balance with the money you set aside from the proceeds to cover your taxes.
Don’t give the govt money early.
Posted on 10/8/25 at 3:01 pm to DB_tiger
Would holding a few more months until you actually needed the $ have made the short term gains long term? I'd hold off on the purchases if possible to avoid the extra tax hit. If in 22% bracket that's an extra 7% versus 15% LTCG. If lower bracket, you may even qualify for zero LTCG rate rather than paying your income tax rate on short term gains.
I think you're supposed to pay estimated quarterly taxes but as others have said pay 100 or 110% of last year and you should avoid underpayment penalty due to safe harbor rule.
I think you're supposed to pay estimated quarterly taxes but as others have said pay 100 or 110% of last year and you should avoid underpayment penalty due to safe harbor rule.
Posted on 10/8/25 at 3:02 pm to DB_tiger
quote:
down payment on house
If you can’t pay cash you can’t afford it
Posted on 10/8/25 at 3:03 pm to DB_tiger
Do you have any losers to offset the gains?
Posted on 10/8/25 at 3:07 pm to el Gaucho
quote:
If you can’t pay cash you can’t afford it
Babytac
Posted on 10/8/25 at 4:48 pm to LoneStar23
quote:
LoneStar23
Thank you!
Posted on 10/8/25 at 7:03 pm to horsesandbulls
quote:
You won’t get penalized if you pay
1) 100% of your 2024 total tax liability (110% if your AGI is over 150k)
OR
2) 90% of your 2025 tax liability that is calculated on your 2025 1040.
Figure out what the answer to 1) is and make sure you pay that much in estimated taxes including any w2 withholding.
Then do your taxes in the spring and pay any remaining balance with the money you set aside from the proceeds to cover your taxes.
Don’t give the govt money early.
This is your answer
Assuming your taxes are higher this year and you’ve paid in enough to cover last year’s amount (or 110% of last year depending on your AGI) then put whatever you’re going to owe in a high yield savings account until April.
This post was edited on 10/8/25 at 7:05 pm
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