Federal law provides for an exclusion or deferral of gain from the sale or exchange of QSBS. California adopted QSBS provisions in 1993 which mirrored existing federal law, but required at least 80 percent of a company’s assets and payroll be within California in order to qualify (CR&TC sections 18152.5 and 18038.5). In Cutler v.… Read More

In a letter to Senator Boxer dated September 19, 2013, IRS Chief Counsel Michael J Montemurro gave a statement on the treatment of debt forgiveness and short sales in the state of California.  In his statement Chief Counsel set forth (with respect to California short sales) the difference between the loan balance and the sales price… Read More

The Internal Revenue Service (IRS) and your state Department of Revenue (DOR) use tax return information to locate individuals and business when notices are required to be mailed; if you move mid-year, an important and possibly adverse notice may be sent to an incorrect address.  You can notify tax authorities of new information by filing… Read More

For taxable years beginning on or after 01/01/09, individuals are required to use electronic payment (ePay) for taxes owed to California once they have met the Mandatory ePay Threshold by: making a single estimated tax or extension payment over $20,000, or filing an original return with a total tax liability for the year over $80,000.… Read More

Generally, the tax rate for taxpayers who qualify for Head of Household filing status is lower than that of Single or Married Filing Separate; in addition, the standard deduction is higher.  Together these favorable tax treatments mean you will likely owe less tax if you qualify for HOH filing status. The FTB has recently issued… Read More

It may surprise you to learn that Franchise Tax Board is more like a ‘WHO’ rather than a ‘WHAT.’  The Board is comprised of three individuals, two of whom taxpayers in California have a voice in electing. The current Franchise Tax Board (FTB) is chaired by California’s State Controller, John Chiang.  The other two members… Read More

One of the most important things to remember in the field of taxation:  Education is the Key to Professional Success.  Not only is tax law complex at best, each year the law regarding taxation – adjustments, deductions, credits – are subject to change at the hand of legislatures. Networking is one way to expand your… Read More