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Tag: Anshul Goyal CPA
California Carbon Capture Credits: Tax Benefits for Startups
As California moves aggressively toward net-zero emissions, it’s offering new carbon capture tax credits to incentivize innovation in climate tech, AI-powered emission tracking, and carbon removal. These credits are modeled partly after IRC §45Q (Federal Carbon Capture Credit), but offer additional state-level tax relief for companies based in California. If you’re involved in carbon sequestration, […]
California Gross Premiums Tax on AI InsurTech Startups
As AI-powered InsurTech startups continue to scale across California, many are entering regulated insurance business models issuing digital policies, underwriting risk through licensed carriers, or acting as MGAs. But one California-specific tax often gets missed in early planning: the Gross Premiums Tax (GPT) under California Constitution Article XIII, Section 28. Unlike income tax, this tax […]
Stock-for-Stock Reorgs: California Franchise Tax Surprises
When your startup undergoes a stock-for-stock reorganization, the focus is usually on federal tax deferral under IRC §368(a)(1)(B) but if your company operates in California, the Franchise Tax Board (FTB) may have a different take. Many founders, CFOs, and legal teams overlook the state-level tax implications of stock swaps, especially when: Entities involved are incorporated […]
Installment Sales of Startup Equity: Watch for California PIT Interest Charges
Installment Sales of Startup Equity Founders and early investors often choose to sell their startup equity through an installment sale deferring recognition of capital gains over time. While this strategy can help with cash flow and tax planning, many forget one important twist: California may charge interest on the deferred income, even if the IRS […]
CA NOL Suspension : Coming Back?
California startups and high-income founders were hit hard when the Net Operating Loss (NOL) deduction was suspended under AB 85 during pandemic-era budgets. With 2025 underway, many are asking: Will California reinstate NOL usage, or will suspensions continue? Let’s decode what’s happening, what to prepare for, and how to preserve your NOL carryforwards while staying […]
EV Credits for CA Robotics Delivery Fleets
EV Credits for CA Robotics Delivery Fleets With California pushing for zero-emission last-mile delivery, startups deploying autonomous EV fleets including robots, e-bikes, and electric vans may now qualify for generous state-level tax credits . This blog breaks down what California EV incentives are available, how your robotics or AI startup can benefit, and how to […]
Public Utility Tax on SaaS Subscriptions: Does It Apply in California?
As more SaaS startups scale in California, founders are facing unexpected tax classifications especially when their platforms involve communications, data transmission, or streaming. One area drawing scrutiny is whether SaaS services are subject to Public Utility Tax (PUT) under California’s rules or local ordinances. Although California doesn’t impose a state-level sales tax on most SaaS […]
CA Escheat Letters to Founders: What to Do If You Get One
CA Escheat Letters to Founders If you’re a startup founder or CFO in California, you might be surprised one day to receive a formal letter from the California State Controller’s Office. It might reference “unclaimed property” or use the word “escheat.” At first glance, it may look like a phishing attempt. But in most cases, […]
Ending a California Trust? Don’t Forget the Final Form 541
Ending a California Trust When you’re ready to terminate a California trust, it may feel like you’re tying up the last loose end. But before you close the books and move on, there’s one final and critical tax step you can’t skip: filing the final California Form 541. Many founders, families, and estate planners overlook […]
Grantor Trusts & CA Startup Shares: Avoid These Tax Traps
If you’re using a grantor trust to hold startup equity a common strategy among founders for estate and tax planning there’s a good chance you’ve heard about the federal tax benefits. But if you’re in California, you also need to think about the Franchise Tax Board (FTB) because California may not treat that trust the […]