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Updated over 1 year ago on .
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Help! I just got blown away by my tax bill
Last year I had to sell half of a duplex. I met with my CPA, discussed the details and they estimated the taxes owed would be in the neighborhood of $10k. I just got my returns back and I ended up owning over $30k. My CPA of course now doesn’t remember his estimate of $10k. Other than setting up a payment plan with the IRS, is there anything else I can do to possibly reduce my $30k tax burden?
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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
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- Tax Accountant / Enrolled Agent
- Houston, TX
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Your CPA may have estimated that selling your property generated $10k of additional tax liability, on top of your other taxes. If you owed $20k from your other income, such as being a realtor or a wholesaler for example, then the total changes to $30k. Of if you under-withheld $20k from your W2 job.
Nobody can answer "what can be done" without a review of your actual tax return. Many tax accountants will do it for you if you reach out.