Any suggestions on how to avoid paying taxs on your leases, before the 1 Jan rolls around.
Estimated taxes on 4th quarter 2011 income due Tuesday 17 January (due to 15th falling on weekend).
Not paying estimated taxes (as and when due) could open one up to substantial penalties.
2011 Tax filing due 17 April.
Check out this IRS document:
None of the above should be construed as substituting for the advice of a qualified tax professional.
I would strongly suggest that you consult a tax professional, as soon as posssible,
All in my humble opinion.
JS; I have had two CPAs state that you need to pay estimated taxes based on what you paid the prior year. Say in 2010 you paid a total of $15,000 in federal income taxes. So far in 2011 you have paid only $10,000 due to layoffs or a drop in pay. But your bonus check came in 2011. Then you should pay a little over $5000 by Jan 17th to total what was paid the prior year and avoid any fines. The balance of all taxes due can be paid by April 17th with no penalties.
This is all what I was advised by two different CPAs. I strongly advise you sit down with your own tax professional to see what is best for you.
Thanks for the link, JS. For my situation, it was quite helpful. Fortunately (??), I'm poor, so I didn't owe tax in 2010. So I won't have to make estimated payments on my 2011 lease payment; I'll pay the tax on April 15. However, since Im getting the other half of my lease payment in 2012, I'll have to make quarterly payments on it, but the first payment isn't due until April 15.
You had no tax liability for 2010.
You were a U.S. citizen or resident alien for the whole year.
Your 2010 tax year covered a 12-month period.
Question has anyone asked the IRS how you can make estimated tax payments without first having the money to do so?
What area are you located in Sandy? I have spoke to a few CPA's & tax advisors. Some of them have mentioned using a particular structuring for the taxes. The ones I have spoken to have been in or around the Canton Ohio area. If you are anywhere close to this area let me know & I will provide you with their contact info...
Hi Sandy, I will inbox you some info now. Hope you find it helpful.