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Jonathan Tierney
Jonathan Tierney, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 318
Experience:  Tax Accountant at Praxair, Inc.
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I RECEIVED A LUMP SUM OF$215,000 OF A HOME- I WOULD LIKE TO

Customer Question

I RECEIVED A LUMP SUM OF$215,000 FOR SALE OF A HOME- I WOULD LIKE TO PAY
ESTIMATED TAX . HELP ME FIGURE OUT HOW MUCH TO PAY THANKS MARIA
Submitted: 1 year ago.
Category: Tax
Expert:  Jonathan Tierney replied 1 year ago.

Hi, my name is ***** ***** my goal here is to provide you with the most complete and accurate answer possible.

There is a gain exclusion on the sale of your personal residence. Have you ever used this home as your personal residence?

In addition, you should have some basis in the property. Do you know how much you paid for and how much you spent on improvements? These amounts will reduce the amount of your gain. However, in order to figure out your actual gain, I would need to know the selling price as well as any of the cost of sale (broker commissions, legal fees, etc.).

In addition, to avoid an estimated tax penalty as long as you pay 100% (110% for higher income taxpayers) of last year's tax through withholding or 4 equal installments, you can pay the balance due when the return is filed. Let me know if you think you are (or will be) fully paid in based upon your 2014 tax.

I look forward to helping you once I have the answers to these questions. In case you feel it would be easier to talk on the phone, I will post service offer for that.

Thanks, Jonathan