Quote:
Originally Posted by Haggar
As an active CPA I tax plan for the next year for my clients when we finish the return for the prior year. Basing estimated payments om prior year income to eliminate penalties and interest is fine for some but for some of my clients they want more info on their next year. Taxable events may change, higher or lower interest income because of changing interest rates, starting to receive social security, RMD's, sale of assets, sale of a business, etc all affect the next year projection. It's important to pay enough estimated taxes but it's also important not to overpay or know what the balance next April 15 will be in addition to the estimates required.
My compliments to many of the posters for answering the OP accurately.
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Haggar, I love it when your CPA-self stops by to rescue us from ourselves. I was hoping you would show up. Thank you.
An extra thank you for taking up for us tax-planning types.
As you well know, there are buy-and-hold, long-term investors who could be thinking about selling or gifting a few shares because their favorite individually held stock(s) just hit an all-time high. If they are paying attention, this should be on their minds.
The October
Kiplinger has an article touted on the cover as "How Much of Your Savings Can You Afford to Give?" The article says to be sure to take care of yourself first, but then goes into several ways to handle gifting. (I know you already know this stuff, of course, but I am throwing it in here in case anyone reading this post might want to find the article.)
The other issue is considering selling and keeping it all for yourself -- except for that pesky cap gain tax. Gauging potential tax-bracket changes and/or a hit from IRMAA means tax-planning so no surprises.
Not terrible problems to have but certainly a reason to plan -- and to talk to an accountant.
Boomer