How Carryovers, Capital Gains and Roth IRAs Affect Estimated Taxes

Your Sept. 8 article titled "Do I Have to Pay Estimated Taxes on Short-Term Investments?" was very interesting. I have a few questions. When calculating estimated tax payments for the current year, should one also take into account past years' investment loss carryovers? Those carryovers might partially offset, or even cancel out, any current year-to-date gains. Also for estimated payments, do I need to calculate short-term and long-term gains separately?

Peter Lochowicz

Peter,

Great questions, Peter, considering your third-quarter estimated tax payment is due by midnight Friday, Sept. 15. ...