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Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
Experience:  Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
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Hi, I sold stocks this year to pay downpayment on a new house.

Customer Question

Hi, I sold stocks this year to pay downpayment on a new house. I estimated what capital gains would be and prepaid Fed Taxes after we purchased our home. However, I did not prepay state (CA) taxes. Should I pre-pay before the end of the year state capital gain tax as well?
Submitted: 3 years ago.
Category: Tax
Expert:  Phillip B, EA replied 3 years ago.
Thanks for using!

California is a pay-as-you-go tax system. This means you should pay your CA estimated income tax before the of the year to avoid (or lessen) the CA estimated tax penalty. See this CA Franchise Tax Board webpage to see tips on calculating your CA estimated taxes.

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