Quarterly payments and sold condo at a loss
I recently received Long Term Dividents of $68,571 and Short Term Div. of $18,124 plus regular
div.of $2,332. I have paid estimated taxes for 2021 of $800 a quarter to Illinois and $2,000 quarter for Federal.
However, I sold my condo in June for a loss. Paid $590,000 in 2007 plus a special assessment of $20,640. Sold for $490,000.
Question: 1)Can the condo loss be taken off the taxes?
2) How much more should I pay in January on my estimated taxes?
Thank you.
Terry Says
Bad news: There is no way to deduct the loss on your condo since it was a personal residence.
To do: Total up ALL your income for the year. That includes work, Social Security, annuity payouts, etc.
Dividends are not long term or short term. They all count as ordinary income (unless in some unusual case, it includes a return of capital). So add them to your total income.
Then, likely you will take the Standard Deduction. If you are filing singly, it is $12,550 for 2021.
Now you have a rough idea of your “net taxable income.” Then check your marginal tax bracket. For 2021, here were the tax brackets for single filers. YOu can find them here.
That will help you estimate the taxes you owe. If you pay in 90% of the taxes you will owe — or 100% of last year’s tax liability — you will be safe from penalty.
This is why God invented CPAs! Find one before Jan 15th and give him/her all this information, plus last year’s tax return, and let them calculate your Jan 15th estimate!
