I have sold property in CA that will net me profits. Am I taxed the same if I reinvest those earnings as opposed to saving the money in the bank? I know that each tax situation is unique and may need to speak to a tax specialist but I thought I would get general advice based on forum readers past experiences.
Yes, since the property is already sold and you have the sale proceeds in hand, you are taxed on your sale profits regardless of what you do with the sale proceeds. Best to estimate your tax liability and put that much into a savings account until you file your taxes. Don’t forget state taxes either.