Selling some Stock/Mutual Funds: Taxes Question

[indianguy80]

Hi Guys,
I have a few mutual funds and stocks that I think is a good time to sell some now. By selling it, I will gain a $10,000 gain and I don't think I will be able to cover taxes with just Employer Witholding (even with increasing it). I saw in IRS website that you can fill our 1040 ES and that should be done quarterly. Is it possible to do it just once instead of quarterly?

[bjl584]

Yes, but you might get a small fine for doing so. Talk to a CPA about it, and they should be able to give you some direction.

[disneysteve]

I will gain a $10,000 gain and I don't think I will be able to cover taxes with just Employer Witholding (even with increasing it).

Keep in mind that the capital gains rate for long term (over 1 year) gains is 15%, so on a $10,000 gain, you'll owe $1,500 (plus any state taxes). Are you sure you can't cover that?

Do you have any investments that have lost money? You can offset capital gains with capital losses by selling some of those losers.