[paying estimated taxes?]

Question for US based investors - particularly Eric. If you owe the govt large amounts of cash from investment gains, do you pay them in the last quarter or you pay them every quarter? Since there is a penalty if one pays less than 90% of owed taxes - I am asking you for advice. I owe taxes for IRA conversion to Roth in 2011 and 2012.

 

cheers!

Shalab

 

Shalab,

 

As long as your payments cover 100% of your tax liability from the prior year, there will be no underpayment penalty.  You can do this even if you know the coming year's tax bill will be higher and you'll just have to make up the difference come filing time.  Realize that if your AGI was over $150,000 (married, filing jointly) the previous year, then the safe harbor is 110% of last year's tax due. 

 

If you plan on splitting the conversion income from a Roth conversion in 2010 on your 2011 and 2012 tax returns, your 2011 estimates would be based off of your 2010 tax return using the rules above.

[How many different businesses in your portfolio?]

3 individual stocks:  BRK, FRFHF, MKL

 

4 value oriented mutual funds:  IVWIX, Chou Equity Opportunity, SGIIX and FAIRX.  Two of these funds use a more concentrated approach (FAIRX and Chou) while IVWIX and SGIIX generally hold over 100 positions. 

[Chou America Funds!]

It's been awhile since I've asked, but anyone have any idea when the funds will be available through Fidelity?

Thanks.

 

 

I spoke with Francis a few weeks back on this issue and he told me that it would probably take between 3-6 months.  My hope is that it is closer to three!