- Need Professional CPA?
Tag: California PIT
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 […]
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 […]
Gig Worker Taxes: Uber/Lyft 1099-K Changes in CA
Introduction Starting in 2025, California gig workers face a tighter reporting regime under both federal and state laws. The IRS has reduced the 1099-K threshold to $600, and California conforms, meaning Uber, Lyft, DoorDash, Instacart, and other platforms now send 1099-Ks to most of their workers. This guide will explain the 2025 tax filing process […]
83(b) Election When You Reside in California: PIT vs Franchise Tax (2025 Guide)
Introduction Filing an 83(b) election in 2025 can save you thousands in long-term capital gains but if you’re a California resident, it comes with a twist: you must consider both Personal Income Tax (PIT) and the Franchise Tax Board’s rules. This blog unpacks the intersection of IRC §83(b) with California PIT reporting, state-sourced equity income, […]