Announcement

Collapse
No announcement yet.

Estimated tax liability

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Estimated tax liability

    If a machine is sold in the second quarter on June 20th, when is the estimated tax on it due? Since second quarter estimates are due June 15 and he did not know beforehand that the sale was going to happen after that but before July 1st, then does the liability carry over to the next quarter?

    Wonder why they didn't make 2nd quarter stuff due July 15th anyway?

    #2
    Originally posted by Black Bart View Post
    If a machine is sold in the second quarter on June 20th, when is the estimated tax on it due? Since second quarter estimates are due June 15 and he did not know beforehand that the sale was going to happen after that but before July 1st, then does the liability carry over to the next quarter?

    Wonder why they didn't make 2nd quarter stuff due July 15th anyway?
    Because...... the second quarter consists only of April and May. June thru August constitute the third quarter, and the last four months fall into the 4th quarter.
    ChEAr$,
    Harlan Lunsford, EA n LA

    Comment


      #3
      Thanks Harlan,

      You just solved my whole problem and I'm much obliged. Who says Alabama boys don't know nuthin' about 'nuthin 'cept football? Still, wonder why they ever set up the months as 3-2-3-4?

      P.S. There's a couple of other blank spots in my background of basics, but I'm not tellin' off about 'em .

      Comment


        #4
        Odd Months

        The idiocy of estimated tax months falling the way they do has some rationale, but it's more like the tail wagging the dog.

        Firstly, the govt's fiscal year ends September 30th, so there's no mystery why they want a heavy collection on September 15th. In fact, if you look at the huge depositors (like Exxon, GE back when they paid taxes, Archer Daniels Midland, i.e. the big money folks) special requirements are placed on corporations who are depositing $100,000,000 or more in September.

        January 15th was chosen (I think) so you wouldn't be able to deduct state taxes on Sch A for the year in question. Taxpayers could easily solve this by depositing by Dec 31 but for some reason none of them will.

        June 15th was chosen to give people plenty of time to get ready for the big Sep 15th deposit. Nevermind the fact that it is only 60 days after April's deposit, but since when has this mattered?

        And my favorite reason -- "I dunno but iss always been thet way."

        Comment


          #5
          Originally posted by Nashville View Post
          The idiocy of estimated tax months falling the way they do has some rationale, but it's more like the tail wagging the dog.

          Firstly, the govt's fiscal year ends September 30th, so there's no mystery why they want a heavy collection on September 15th. In fact, if you look at the huge depositors (like Exxon, GE back when they paid taxes, Archer Daniels Midland, i.e. the big money folks) special requirements are placed on corporations who are depositing $100,000,000 or more in September.

          January 15th was chosen (I think) so you wouldn't be able to deduct state taxes on Sch A for the year in question. Taxpayers could easily solve this by depositing by Dec 31 but for some reason none of them will.

          June 15th was chosen to give people plenty of time to get ready for the big Sep 15th deposit. Nevermind the fact that it is only 60 days after April's deposit, but since when has this mattered?

          And my favorite reason -- "I dunno but iss always been thet way."
          The gobment's fiscal used to end on June 30th, and the current dates were same then, ever since 1972 as I remember. Thus June 15th was chosen for the same reason Ron gives for the Sep 30th date and Sep 15th date.

          and since Jan 15th was always the date, it was the only reasonable left after the fourth quarter ended on 12/31.
          ChEAr$,
          Harlan Lunsford, EA n LA

          Comment


            #6
            Does this mean that back in the days that the 1040 was due on March 15, the estimated taxes were also due then?

            And if you're wondering how I know that income taxes used to be due on March 15, it was in an I Love Lucy episode.

            Comment


              #7
              Originally posted by Gary2 View Post
              Does this mean that back in the days that the 1040 was due on March 15, the estimated taxes were also due then?

              And if you're wondering how I know that income taxes used to be due on March 15, it was in an I Love Lucy episode.
              I pulled a book from the shelf, but that 1956 Prentice Hall tax course said due date was just as now, April 15th , with estimate dates same as now.

              But I do remember my father having to file returns by March 15th. Everyone said there was some connection with that being the Ides of March, a special day in history of Rome.
              (Hale Caesar, do NOT go to the forum today.)
              ChEAr$,
              Harlan Lunsford, EA n LA

              Comment


                #8
                Originally posted by ChEAr$ View Post
                I pulled a book from the shelf, but that 1956 Prentice Hall tax course said due date was just as now, April 15th , with estimate dates same as now.
                It turns out that the change was made in 1955. See http://ask.yahoo.com/20020415.html for a good overview, though the link there to a Fortune magazine article is dead.

                Comment

                Working...
                X