- Need Professional CPA?
Tag: FTB audit
California 409A Valuation Discounts: State Tax Footnotes Investors Read
Introduction If you’re a California startup issuing stock options, your 409A valuation isn’t just a federal concern. The Franchise Tax Board (FTB) scrutinizes how discounts and FMV are reported for state tax purposes too. In 2025, with more investors reviewing state-level footnotes and tax risks, understanding how CA treats 409A discounts can impact cap tables, […]
Cryptocurrency Taxes in California: PIT vs. Franchise Board Guidance
Introduction In 2025, California crypto traders, DeFi investors, and NFT creators face two levels of tax scrutiny: federal and state. While the IRS has provided detailed cryptocurrency guidance, the California Franchise Tax Board (FTB) has begun matching federal treatment with additional sourcing and PIT (Personal Income Tax) consequences. If you’re a resident, part-year resident, or […]
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, […]
California 409A Valuation Discounts: State Tax Footnotes Investors Read
Introduction Your startup’s 409A valuation isn’t just about issuing stock options it’s a due diligence magnet for investors and auditors alike. But here’s the twist for 2025: California investors are combing through state tax footnotes, especially for valuation discounts. In this guide, we cover how 409A valuation discounts affect California state tax reporting and how […]
The Truth About California’s Exit Tax – How to Avoid It Legally (2025 Edition)
Introduction Thinking about moving out of California to save on taxes? You’re not alone. But before you pack your bags, there’s a lingering myth you’ve likely heard: the “California Exit Tax.” While the concept is often misunderstood, it’s very real for certain taxpayers—especially high earners and business owners. What Is the California Exit Tax? Applicable […]