When to report Capital Gains on a sales that spans calendar year.

[Michael Boyer]

I've been a lurker here at BiggerPockets for some time, but now I have a question that I'm hoping someone can answer.

I have a long term rental property that I had to sell. The sales agreement was signed in November. We wanted to close this year to take advantage of a possible lower capital gains rate. However, now closing won't happen until January 16th.

The property is in my personal name and not a business name.

Can I still report the capital gains in 2012 (when the sale took place) or am I required to report the capital gains in 2013 when closing occurred and I received the funds.

If I can report in 2012, what about estimated taxes? The estimated taxes for 4th quarter is due January 15th, a day before closing? What happens if I don't pay the estimated taxes and wait until April 15th?