Legal Question in Tax Law in Illinois

Parents owned rental home in Arkansas. It was all written off over the years. They sold it. They are both 87 years old. Do they have to pay quarterly taxes and will they incur penalty for not doing so the first two quarters of the year?

Asked on 9/12/11, 6:35 am

1 Answer from Attorneys

Sanford M. Martin Sanford M. Martin, P.A.

The information in your inquiry is incomplete to fully address your question. Generally, one must pay estimated taxes to the IRS (1040-ES) if expected 2011 taxable income exceeds $1000, with various exceptions and provisions. If parents have sold the property, paid any taxes due, and no longer receive income from the property, no quarterly taxes or penalties apply. If they sold the property in 2011, their 2011 1040 should include the sale of the rental property. Depending on the amount of any capital gains, date of closing, or other income from the property or other sources, a filing of 1040-ES to pay estimated taxes may be required. A description of relevant facts relating to the tax issues is required for a specific response.

Read more
Answered on 9/12/11, 6:55 am

Related Questions & Answers

More Tax and Taxation Law questions and answers in Illinois