Do You Have To Pay Taxes At Closing On An Ivestment?
when i buy a house to rehab and fix it up and resale it do i have to pay the taxes on the profit right there at the closing or do i only have to pay that once a year as part of my regular income taxes?
thx. i guess i dont HAVE to pay right at the time of closing but have the option to pay once a year, right?
You can always just pay once a year, but if your withholdings are insufficient for your tax bill, you will have to also pay an underwithholding penalty.
File a quarterly estimated tax return to avoid this problem. Consult your CPA for specific details. Your CPA can also walk you through all the inticacies of Schedule C and Schedule SE if you have not done these before.[ Edited by NewKidinTown2 on Date 02/16/2005 ]