Snapshot vs Time Based
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Snapshot vs Time Based I certainly don't have to worry about any gain this year, but we have done OK in years gone by. By using the Snapshot method of accounting, can the income be reported as all occurring in the last quarter of the year (as with mutual funds)? This would eliminate the need for quarterly payments and no penalty would be incurred as long as the tax liability was paid by January 31 of the next year. No, mutual funds are a seperate creature for tax purposes, you must pay estimated taxes as the gains are realized. On a side note estimated tax penalties would apply depending on your situation January 15th or April 15th not January 31st. Joseph C. Emmett wrote: > I certainly don't have to worry about any gain this year, > but we have done OK in years gone by. By using the Snapshot > method of accounting, can the income be reported as all > occurring in the last quarter of the year (as with mutual > funds)? This would eliminate the need for quarterly > payments and no penalty would be incurred as long as the tax > liability was paid by January 31 of the next year. |
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