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Tag: Stock options
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, […]
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. […]
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 […]