Franchise Tax Board

2016 Tax Planning Guide

 

Our 2016/2017 Tax Planning Guide is now available. The election of a new President in addition to Republicans retaining control of Congress could result in significant changes in tax laws in the upcoming year.  Our online Tax Planning Guide will give you access to updated tax and financial planning information throughout the year as legislative changes are made. Feel free to forward it to friends and family who you think might find it interesting or helpful. We hope this guide will prove to be a convenient resource for you throughout the year.  Just a few of the topics covered in the guide are:

  • Changes to some business and individual tax filing deadlines effective in 2017
  • Tax planning for investments and net investment income tax
  • How […]

2015 Tax Planning Guide

New Year 2015 And Clock

 

Our 2015 Tax Planning Guide is now available. This online guide will give you access to updated tax and financial planning information throughout the year. Feel free to forward it to friends and family who you think might find it interesting or helpful. We hope this guide will prove to be a convenient resource for you throughout the year. Just a few of the topics covered in the guide are:

 

  • Roth IRA conversions
  • Bunching income and expenses as a year-end planning strategy
  • Planning for restricted stock and stock options
  • Planning for real estate investments
  • Succession and retirement planning for business owners
  • Charitable giving strategies

 

If you have any questions after reviewing the information presented, please do not hesitate to […]

FTB Updates Publication 1016 (Real Estate Withholding Guidelines)

California Revenue and Taxation Code Section 18662 and the related regulations require withholding of a 3 1/3% tax at the source from the sale or exchange of California real estate.  The California Franchise Tax Board (FTB) has revised FTB Publication 1016, Real Estate Withholding Guidelines. The revised publication, the purpose of which is to provide guidance on the withholding requirements for sales of California real property, covers the following topics:

  • General Information (e.g., definitions, a list or real estate withholding forms, what is the real estate withholding requirement, who is subject to it, when is real estate withholding not required);

 

  • Information for Sellers (e.g., exemptions for sellers, how to calculate withholding, seller’s filing requirements, electing out of withholding on installment payments);

 

  • Information for Buyers (e.g., […]

FTB to Review Head of Household Filing Status for 83,000 Taxpayers

The Franchise Tax Board (FTB) has announced that it is mailing more than 83,000 letters to taxpayers asking them to justify the Head of Household (HOH) filing status claimed on their 2014 tax returns as part of an annual FTB filing status review. HOH filing status is for unmarried taxpayers who care for a child or other relative for more than half of a year and cover more than half of the household’s annual expenses. There are strict rules for determining whether a taxpayer qualifies for HOH filing status (for which the FTB provides an online guide and eligibility test), and taxpayers who are found not to qualify may owe additional taxes. Taxpayers receiving an FTB letter can respond by filling out […]

By |November 3rd, 2015|Categories: Franchise Tax Board, Individual Tax|Tags: , , , , , , , |Comments Off on FTB to Review Head of Household Filing Status for 83,000 Taxpayers

California College Access Tax Credit

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Under bills SB 174 and SB 798 signed by Gov. Jerry Brown in September 2014, California introduced a creative way to increase funding for the Cal Grant B program, which provides money for books and living expenses to low-income college students. Contributions to the CATC (College Access Tax Credit) Fund are eligible for a federal charitable contribution deduction as well as California tax credit.  The amount of the California tax credit for years 2014-2016 is as follows:

60% for contributions during 2014

55% for contributions during 2015

50% for contributions during 2016

Since taxpayers are not allowed a deduction and a credit for the same contribution, any charitable deduction made to the CATC Fund claimed on a taxpayer’s federal income tax return must be added back as a state […]