We need an answer from a New York attorney.We have sold a piece of property in the State of New York. We would appreciate your assistance in completing the Non-Resident Real Property
Estimated Income Form (IT-2663). We are selling this on an installment sale
. We purchased the property for $390,000 and had $10,748.04 in improvements and closing costs
when we purchased the property for a total of $400,748.04.We sold the property for $450,000 on an installment sale. The buyer will pay $7,500 down payment and an estimated $3,373.58 in principal payments in 2016. Our total gain when the loan is paid in full will be $44,078.96, presuming he makes all payments on time.We are trying to understand what Line 20 “estimated tax due” will be. According to our understanding, if the gain is being reported as an installment sale, the amount of the gain will be a percentage of the $7,500 down payment plus a percentage of the principal in each installment sale for 2016 ($3,373.58) for a total of $10,873.58. Do we pay the .0882 tax on the $10,873.58, or a portion of that based on the gain as our estimated tax due on Line 20?I am assuming that what we would owe on Line 20 is $10,873.58, which is the amount of money we expect to receive in 2016 down payment and principal, divided by $44,078.96 which is the total gain we expect on the property when it is paid in full. We multiplied that number by .2467 which we rounded to 25% ($2,718.40). We multiplied that by .0882 for a total of $239.77.