I would like to sell stock valued at $X for combined long-term capital gains of around $Y. The sale would be in July. I expect the tax on the gains alone to be well over $1,000.
When you're in the middle of a tax year and you make significant extra (investment, say) income that you weren't planning on earlier in the year, how do you have to pay federal income tax on that income? For states with income tax, does it typically work similarly?
I plan on talking to a CPA or advisor but I'd like to get an idea of what to expect. Do I send a lump sum payment by the next quarterly payment due date? Do I do nothing and pay the balance when filing my 2017 return (with or without penalty/interest)?
Assume upper middle income household, long-term capital gains of around 1/3 of regular household salaried income, withholdings on salary cover 100% of prior year tax and 65-75% of current year tax due.