flotsamandjetsam
Recycles dryer sheets
So, I had a windfall from the sale of a business interest at the end of 2011.)) I invested most of it in Vanguard funds. Our tax landscape is altered and I need to recalibrate our estimated tax payments. Since our taxes will be substantially lower this year, we don't have a safe-harbor option available.
What I did was look up the yield for each fund in the most recent annual fund report. Then I found the Vanguard page that shows the percentage of qualified dividend income (QDI) for each fund.
Crunch-crunch in a spreadsheet and I have a projection of ordinary income and 15% dividend income from our investments. There is also one tax-exempt bond fund in there to account for. I am not sure what to use for an effective tax rate for the non-QDI income. Something like 25% (we are both still working).
Is this a reasonable approach? I will handle any CG transactions that come up during the year. Divide by 4 and send the checks? I will round the payments up a little to be safe.
TIA. -F&J
What I did was look up the yield for each fund in the most recent annual fund report. Then I found the Vanguard page that shows the percentage of qualified dividend income (QDI) for each fund.
Crunch-crunch in a spreadsheet and I have a projection of ordinary income and 15% dividend income from our investments. There is also one tax-exempt bond fund in there to account for. I am not sure what to use for an effective tax rate for the non-QDI income. Something like 25% (we are both still working).
Is this a reasonable approach? I will handle any CG transactions that come up during the year. Divide by 4 and send the checks? I will round the payments up a little to be safe.
TIA. -F&J