...did not have any cash to pay the tax man.
If your tax bill is 400k at least send in 200k don’t fuck around.
I'm not concerned about my lack of discipline, with respect to touching the funds allocated for tax, but now that you mention it, don't you start to accrue penalties or something (interest owed ?) depending on when/how much you sell in the quarter ?
Don't feel like emailing my tax dude right now... Rick just asked why not wait until end of Q4 to pay tax ?
Current max tax rate in US for long-term gains is 20%.
Oh, fucking bonus ! Thought is was 23.8% or something (was at some point ?). That extra 3.8% will probably buy Rick a new gold codpiece he's been eyeing...
well you cashed in this quarter so technically you should pay a lot of your tax for 2020 by jan 15th
this is usa fed law. you can wait for that last payment date which is jan 15th.
lets pretend you normally make 200k a year and pay 45k in fed tax.
this year lets pretend you made that same 200k and were paying 11k a quarter. so you paid 33k and will need to pay 12k to get to 45k to square away the normal money and normal taxes.
so pretend the cash out was 2.5 mill. the basis was .5 mil and it is all long term so 2 mill x 20% is 400k
4qt payment is due by jan 15 2021.
say 12k + 400k = 412k will be due.
if you pay half now 206k
and pay 2nd half by jan 15th.
It works.
If you wait till Last minute to pay all money due jan 15th
life has a way of making problems.
btw have fun with the coin enjoy.
I am assuming you held more coin for the 25-30k cash out opportunity.😄
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