I’m selling a house I have rented out for past 7 years. Before that I lived there for 16 years. There will be quite a bit of capital gain.

To pay quarterly capital gain tax, do I mail in or find a local IRS office? Because it’s a large sum, Im afraid to mail.

Can I wait to pay tax next year together with my tax return?

No tax benefit unless you lived there 2 of the last 5 years in my understanding.

You lived there ..... would you consider moving back for a couple years?

Yes, must recapture depreciation and determination capital gains. TRYAN's advice to move back for 2 years would reduce your capital gains.

wmh, you said that before and I forgot to look into it. In July I still had to fill out the certification that states the 2 of 5 years. Although it says "principal residence" local companies all have me fill out and sign it every time I sell. This the form, in part ...

UOPA07 CERTIFICATION FOR NO INFORMATION REPORTING ON THE SALE OR EXCHANGE OF A PRINCIPAL RESIDENCE

This form may be completed by the seller of a principal residence. This information is necessary to determine

whether the sale or exchange should be reported to the seller, and to the Internal Revenue Service on Form 1099-S,

Proceeds From Real Estate Transactions. If the seller properly completes Parts I and III, and makes a "true"

response to assurances (1) through (6) in Part II (or a "not applicable" response to assurance (6)), no information

reporting to the seller or to the Service will be required for that seller. The term "seller" includes each owner of the residence that is sold or exchanged. Thus, if a residence has more than one owner, a real estate reporting person must either obtain a certification from each owner (whether married or not) or file an information return and furnish a payee statement for any owner that does not make the certification.

Part I. Seller Information

1. Name:

2. Address or legal description (including city, state, and ZIP code) of residence being sold or exchanged:

e Drive Lancaster, PA 17603

3. Taxpayer Identification Number (TIN):

Part II. Seller Assurances

Check "true" or "false" for assurances (1) through (5), and "true", "false", or "not applicable" for assurance (6).

True False

  (1) I owned and used the residence as my principal residence for periods aggregating 2 years or

more during the 5-year period ending on the date of the sale or exchange of the residence.

  (2) I have not sold or exchanged another principal residence during the 2-year period ending on the

date of the sale or exchange of the residence.

  (3) I (or my spouse or former spouse, if I was married at any time during the period beginning after

May 6, 1997, and ending today) have not used any portion of the residence for business or rental

2 out of 5 still exists for residence.

You have some options to avoid paying:

1031 exchange

121 exchange

or 171 bargain sale

You will end up paying the capital gains, if you elect not to follow any of the above paths in the following year's tax return.