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Stay on top of estimated tax payments and avoid IRS penalties

Real Estate Tax Talk

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

June 15 was an important day for self-employed real estate professionals: It was the due date for the second estimated tax payment for 2011. If you forgot about it, you can still pay it. The earlier you do so the smaller will be any interest or penalties you'll owe on your late payment.It's important to remember that self-employed people must pay their income and Social Security and Medicare taxes themselves. Nothing is withheld from their pay. Ordinarily, this is done by making four annual estimated tax payments to the IRS each year as shown in this chart: Income received for the period: Estimated tax due: January 1 through March 31 April 15 April 1 through May 31 June 15 June 1 through August 31 September 15 September 1 through December 31 January 15 of following year Don't get confused by the fact that the January 15 payment is the fourth estimated tax payment for the previous year, not the first payment f...