Expert: John Kirk, CPA Date: 8/11/2008 Subject: timber tax
Question QUESTION: I just sold some timber and rec'd $35,000. Do I need to contact the IRS now and go ahead and pay taxes on this? I don't want to have to pay a penalty in the spring for owing too much tax. Any advice you can provide would be greatly appreciated.
Thanks so much.
ANSWER: Are you making estimated tax payments presently?
John Kirk, CPA
www.johnkirkcpa.com
---------- FOLLOW-UP ----------
QUESTION: No we are not....but are having the maximum withheld...
Answer If you pay in at least 100% of last year's tax liability for 2008 taxes you won't be penalized, but the remainder in a savings account to be used on April 15th, 2009. You should but away approximate 25% to 35% depending on state income taxes
