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Tag: Startup exit
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 […]
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 But California repealed its state QSBS exclusion, and it’s time to separate fact […]
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 […]