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When Should I Pay Taxes After Closing?

JohnSilva
2008-04-03 12:40

If I just double closed on a property and made my money, paid out the money to my bird dogs and bill of sale, what do I do about taxes? Do I need to pay taxes now? Do I send out 1099s now also?


finniganps
2008-04-03 16:28

1099's are generaaly due at the end of January in the year following the income paid out (in your case they'd be due 1/31/09 for payments made during 2008). Be sure to get teh ID numbers from the people you paid now.

As far as estimated tax payments, that depends on your income situation. There are many exceptions to the estimated tax payment rules. Look up the IRS estimated tax payment rules from www.irs.gov (Form 1040-ES) for guidance.


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