Members of the Maryland Association of Certified Public...

Tax questions

March 20, 1997

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q: In February 1997, I sold a sizable amount of stock. I file quarterly estimated federal taxes. Must I pay any of the capital gains tax from that sale during '97 or may I wait and pay when filing '97's tax return in '98?

A: You may qualify for "safe harbor" estimated taxes by paying taxes equivalent to your 1996 tax liability and then paying the remainder, if applicable, at the time of filing in 1998. Be sure to consider whether you should pay your state tax liability before December 31, 1997, in case you itemize your deductions and would like to deduct the state tax payment for 1997 in 1997.

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To ask a tax question, call Sundial at 410-783-1800. Call 268-7736 in Anne Arundel County, 836-5028 in Harford County and 848-0338 in Carroll County. Using a Touch-Tone phone, punch in the four-digit code 6225 after you hear the greeting.

Readers also can e-mail questions through The Sun's Web site -- www.sunspot.net.

Selected questions will be answered in the Business section. No questions will be answered by phone.

Pub Date: 3/20/97

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