[catonsville]

I removed about 100K. How much capital gains will I have to pay on that amount? Should I pay it quarterly in estimated taxes or pay it in total?

[ebaines]

"Removed" from where? Is the $100K a capital gain from the sale of an asset such as stocks, bonds, mutual fund, or property? Or by "remove" do you mean you took a withdrawal from an IRA or 401(k) account?

Yes, you should make a quarterly estimated tax payment. To avoid interest or penalties you must have pre-paid via estimated taxes plus any other withholding at least 90% of the final tax bill or an amount equal to your 2012 total tax bill, whichever is less. So depending on your situation it may be that you don't have to file estimated taxes at all. However, even if it's not required it's pobably a good idea so that you don't end up with a significant tax bill next April. Also, depending on where you live you may also have state and/or local income taxes and estimated payments as well.

[catonsville]

"Removed" from where? Is the $100K a capital gain from the sale of an asset such as stocks, bonds, mutual fund, or property? Or by "remove" do you mean you took a withdrawal from an IRA or 401(k) account?

Yes, you should make a quarterly estimated tax payment. To avoid interest or penalties you must have pre-paid via estimated taxes plus any other withholding at least 90% of the final tax bill or an amount equal to your 2012 total tax bill, whichever is less. So depending on your situation it may be that you don't have to file estimated taxes at all. However, even if it's not required it's pobably a good idea so that you don't end up with a significant tax bill next April. Also, depending on where you live you may also have state and/or local income taxes and estimated payments as well.

I took it out of a stock I inherited many years ago. Like 15 years ago. My last cap. Gains for 2012 was 28k. What is the % I should pay on 100K? Last year the 28K was not because I wanted to take it, the company went private so I had no other choice. The 100K was out of fear that the same thing might happen and wanted to lower the blow should it happen again.

[ebaines]

OK, so the $100K figure is the difference between the proceeds you received for the sale of the stock and your cost basis in the stock, which is equal to the fair market value of the stock when you inherited it 15 years ago, correct?

Long term capital gains are taxed at 15% for people whose adjusted gross income is between $36,250 and $400K, and 20% for people whose AGI is greater than $400K. So unless you have some other major sources of income you could write a check for $15K and send it to the IRS as a 3rd-quarter estimated tax payment (due September 15).

[catonsville]

OK, so the $100K figure is the difference between the proceeds you received for the sale of the stock and your cost basis in the stock, which is equal to the fair market value of the stock when you inherited it 15 years ago, correct?

Long term capital gains are taxed at 15% for people whose adjusted gross income is between $36,250 and $400K, and 20% for people whose AGI is greater than $400K. So unless you have some other major sources of income you could write a check for $15K and send it to the IRS as a 3rd-quarter estimated tax payment (due September 15).

I am making arrangements to do just that. Thanks, Another question is there any way to take that money and invest it inorder to not have to pay cap. Gains or defer it? I.E. like it is possible to defer the taxes if you sell a house and put the money in another home?

[ebaines]

No - that tax break for homeowners is one of the few cases where an individual can defer CG taxes. There ares some other similar breaks in commercial real estate, and also for assets in qualified retirement accounts (IRA or 401(k)), but not for investment in stocks, bonds, collectibles etc. by individuals in an non-retirement account.