|
PureBytes Links
Trading Reference Links
|
Your advice to see a tax accountant was correct. The form number for
automatic filing extension is Form 4868. As I read the instructions for
this form, the filing deadline is extended to August 15 but not the deadline
for paying the tax you owe. Also, the instructions say that Form 4868 must
be accompanied by a check for the amount owed. It warns that you will be
access interest charges on the unpaid balance from April 15 on and there may
also be a late payment penalty.
I am not qualified to give tax advice. Just read the IRS instructions.
Jim Walker
> -----Original Message-----
> From: Patrick White [mailto:spy@xxxxxxxxx]
> Sent: Saturday, March 06, 1999 12:21 AM
> To: omega-list@xxxxxxxxxx
> Subject: Re: Tax question - off topic but probably of interest to most
>
>
> You may want to get a tax accountant's advice on this whole
> problem. The best thing I can think of offhand is to delay
> payment of your tax. I don't recall the form # but you can
> effectively delay tax payment until August if you file the right
> form before April 15 (ask your accountant). At least this will
> allow you to budget for your big tax hit.
>
> If it is Futures or options (I think) you can split the liability
> between Short and long term 40/60, so the tax total will be less
> than you might think as congress has lowered the tax rates
> lately.
>
> >Although you will probably be hit with a big tax liability in
> the year you
> >had the spike, if the following year you have a big loss, you
> can refile the
> >prior year's return and carry back the current year loss to
> offset the big
> >hit in the prior year. In effect, commodity tax laws allow you
> to do some
> >averaging. However, you still have to come up with the cash to
> pay the big
> >tax bill in the first year even though you will get it back when
> you refile
> >the next year to carry back losses to winning years.
>
>
> Patrick White
>
>
|