Question

Too late for quarterly payment if I sold rental house Oct 2021?

Forum|Forum|4 years ago
March 20, 2022
1 reply
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We sold our rental house on October 1, 2021. Thanks to this seller's market, we made a pretty decent profit. We will be paying taxes on the net proceeds from the sale. That's fine. But we weren't aware that we would need to submit a quarterly payment by January 22, 2022. Or did we?

I would like to get the payment in asap as it looks like we'll be penalized for being late (or will we?), but I'm not ready to sit down and do our complicated taxes just yet. I have to wait for a few more documents that never arrive before April 1. I entered enough basic information in TurboTax to get a 1040ES, but it says "Calendar year 2022 form 1040ES Payment Voucher 1, due 4/18/2022." Does Calendar Year 2022 apply to the tax year, or the income year? I've never had to file quarterly payments before.

Should we have paid something to the IRS by January 2022 if our sale was October 2021? Or does the quarterly payment requirement apply to our estimated taxes that are due April 18, 2022? I'm so confused!

Thanks so much.

Weeble

VolvoGirl

Employee

No the 1040ES slips are for next year 2022 tax return. It is too late to send in an estimated payments or 2021. The last one was due Jan15, 2022. Now you can send in a payment with an extension to file or just pay the tax due when you file. Any tax due is due April 18, 2022.