For example if you have (assume no other income):
2022 $600K capital loss carried forward
2023 $300K capital gains
2024 $1.5M capital gains
Do you have safe harbor to pay 0 estimated tax until Jan 2025 without penalty?
The IRS is pretty clear on this:
You don’t have to pay estimated tax for the current year if you meet all three of the following conditions.
- You had no tax liability for the prior year
- You were a U.S. citizen or resident alien for the whole year
- Your prior tax year covered a 12-month period
You had no tax liability for the prior year if your total tax was zero or you didn’t have to file an income tax return.