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Tag: FTB rules
QSBS & California: 0% State Exclusion? Myth-Busting the Rules
Introduction Heard you can sell startup stock tax-free under Qualified Small Business Stock (QSBS) rules? That’s only partially true especially if you live in California. In 2025, many founders mistakenly believe the QSBS 0% exclusion applies at the federal and state level. But California repealed its state QSBS exclusion, and it’s time to separate fact […]
Payroll R&D Credit: Why the CA Program Is Capped
Introduction Startups across the U.S. leverage the federal payroll R&D credit to offset up to $500,000 in employer-side payroll taxes. But what about California? In 2025, California still does not allow R&D credits to offset payroll tax, and its overall research credit program is non-refundable and capped for corporations. This guide explains why CA R&D […]
California R&D Credit vs. Federal: Can Founders Double-Dip?
Introduction Founders often ask: “Can I claim the R&D credit at both federal and California levels?” In 2025, the answer is yes but with key differences in calculation, rules, and refundability. In this blog, we compare the California Research Credit with the Federal R&D Credit under IRC §41 and guide founders on how to maximize […]
QSBS & California: 0% State Exclusion? Myth-Busting the Rules
Introduction You may have heard that Qualified Small Business Stock (QSBS) offers a 0% tax rate, but in California, this is where myths and reality diverge sharply. In this 2025 guide, we’ll unpack whether California honors IRC §1202 exclusions, how state sourcing affects your gain, and what founders need to know about myth-busting QSBS treatment […]
Stock-Option Income: When Do CA Non-Residents Owe?
Introduction Non-residents often believe they’re off the hook for California taxes but stock options granted while living or working in California may still be sourced to the state even years later. In 2025, with increasing audits on equity-based income, this blog explains when non-residents are liable for California taxes on exercised or vested stock options. […]