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Tag: Tax planning
California Carbon Capture Credits: Tax Benefits for Startups
As California moves aggressively toward net-zero emissions, it’s offering new carbon capture tax credits to incentivize innovation in climate tech, AI-powered emission tracking, and carbon removal. These credits are modeled partly after IRC §45Q (Federal Carbon Capture Credit), but offer additional state-level tax relief for companies based in California. If you’re involved in carbon sequestration, […]
CA NOL Suspension : Coming Back?
California startups and high-income founders were hit hard when the Net Operating Loss (NOL) deduction was suspended under AB 85 during pandemic-era budgets. With 2025 underway, many are asking: Will California reinstate NOL usage, or will suspensions continue? Let’s decode what’s happening, what to prepare for, and how to preserve your NOL carryforwards while staying […]
Manufacturers’ Sales Tax Exemption for Robotics Startups
Introduction California’s partial sales and use tax exemption for manufacturers can be a game-changer especially for robotics startups purchasing high-tech equipment. In this 2025 guide, we explain how eligible businesses can save up to 3.9375% in state-level sales tax, and how to apply it to robotics, AI, and automation equipment. Relevant Tax Code and Regulations […]
California Dynasty Trust? Timeline, Tax, and Legal Hurdles
Introduction A Dynasty Trust is a powerful estate-planning tool that can protect wealth for multiple generations often 100 years or more. But in California, unlike states like Nevada or South Dakota, dynasty trusts face legal limitations, high taxation, and regulatory complexity. In this 2025 guide, we’ll break down how dynasty trusts work, what’s allowed under […]
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 […]
California’s Estate & Inheritance Taxes: Who Pays & How Much? (2025 Edition)
Introduction If you live in California or inherit assets from someone who did, you may wonder whether estate or inheritance taxes apply. While California has no estate or inheritance tax, large estates may still be subject to federal estate tax and other income tax consequences. Here’s what you need to know in 2025. Does California […]
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 […]
How Proposition 13 Protects California Homeowners from Rising Property Taxes (2025 Edition)
Introduction California homeowners have long enjoyed stable and predictable property taxes thanks to Proposition 13, a landmark law passed in 1978. If you’re a property owner in California—or plan to become one—understanding how Prop 13 works can save you money and stress in 2025 and beyond. What Is Proposition 13? Applicable Code: California Revenue & […]
Does California Have a Capital Gains Tax? Everything You Need to Know (2025 Edition)
Introduction Capital gains can impact your tax bill significantly—especially if you’re a California resident. Unlike the IRS, California doesn’t offer lower tax rates for long-term capital gains. Let’s break down how California treats capital gains in 2025 and how to report them properly. What Are Capital Gains? Applicable Code: IRC §1222; California Revenue & Taxation […]
How to Minimize California Property Taxes Using Proposition 13 (2025 Edition)
Introduction California’s real estate prices are among the highest in the nation—but thanks to Proposition 13, long-time homeowners and investors can pay significantly less in property taxes. Understanding how Prop 13 works in 2025 can help you preserve low property tax bills, plan your estate, or structure real estate deals more efficiently. What Is Proposition […]