Questions tagged [california]

for questions that relate to the laws, practices, and products for the state of California. California is a state within the 50 state union of the United States.

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4
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2answers
102 views

Handling rent debt in California

Due to the pandemic, I was unable to pay rent for my apartment complex that I have now moved out of. I do not have the money to pay this debt because I was unemployed because of the pandemic. ...
2
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1answer
57 views

How to avoid the $800 minimum franchise tax as a California resident with out-of-state business?

Assume a California resident sets up an out-of-state trust, which in turn is the only member (and manager) of an out-of-state LLC for business in another state (e.g. holding rental properties outside ...
2
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0answers
36 views

Income taxes - Changing state of residence before moving out of the US

I'm an European citizen working for in the US with a 2 year contract; I was and will be a non resident alien for 2020 and 2021, but RA in 2022; I have to contribute to a retirement fund (it's a 401(a),...
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2answers
73 views

If I move out of state for 6 months to work remote, how do I setup my tax residence?

Currently my wife and I are living in California. I work remote for a company there. I am not a US citizen but I have an EAD (work authorization) in case it matters. So for now, I have been a ...
0
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0answers
64 views

Can home solar power installations be deducted as a business expense?

I run computer servers at home 24/7, and my home is in California. To power them, I would like to install solar panels and home battery backup system. Can I deduct this as a business expense for my ...
0
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2answers
67 views

Is CA FTB not in breach of IRS rules by demanding ITIN?

The IRS declares in many documents that: "ITINs are IRS assigned numbers issued only for federal tax administration purposes" and "ITINS do NOT Serve as identification outside the ...
1
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1answer
56 views

W-2 from company despite no longer a current employee

I last worked for this company in August of 2019. I am trying to file my taxes for 2020. I received a W-2 for 2020 because I received a direct deposit from this company in March of 2020. I believe ...
-1
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1answer
88 views

Working in 2 different states: does the California income tax rate only consider the money earned in California, or anywhere?

For example, let's take Bob who: worked from January to March in California, where he earned 30kUSD (W2 income and Bob was a California resident), worked for the rest of the year in the state of ...
12
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2answers
3k views

If someone had purchased some stocks prior to leaving California, then sold these stocks outside California, do they owe any tax to California?

If an individual moves from California to another US state and had some RSUs granted before leaving California, then they'll owe some taxes to California (mirror): Allocation Ratio = (total workdays ...
0
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0answers
26 views

irrevocable trust - property taxes

I am the trustee of an irrevocable trust, in this trust are two single resident homes with no mortgage. Recently, one home was taken out of this irrevocable trust to get a loan/mortgage. With this ...
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2answers
77 views

Just engaged! What tax filing options do I have as sole household earner

I'm recently engaged, which is good. But this presents a quandry. I make 100% of the money for our household, and we've been living together for nearly 2 years now. Tax wise, this kind of sucks. My ...
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2answers
77 views

Will I get double-taxed? Primary address in North Carolina but work is in California

Disclaimer: I am aware that users here are not paid/licensed U.S. tax professionals and that I should only make decisions impacting my taxes with a licensed financial advisor. Hi! I have a job in ...
2
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1answer
84 views

Sales Tax on Trades

I traded my laptop for my neighbor's TV. We live in Los Angeles, California. Do we owe any sales tax to any government?
25
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2answers
6k views

Do I need to pay taxes as a food delivery worker if I make less than $12,000 in a year?

I started working for Doordash, a food delivery service. Technically I think I am a self-employed contractor. I saw online that you don't have to declare taxes if you make less than $12,200 in a year. ...
1
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1answer
57 views

How much do i owe the IRS on Sept 15th for income received in September?

Sold a house at end of August. Cap gains of about $240k to $375k (federal + California) income tax will be due. How much should I pay Sept 15th, 2020?
1
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2answers
185 views

Risks when buying property with illegal granny unit?

Property I am looking at has 1000 square feet illegal granny unit. Main house has 4000 square feet. If I would buy property as-is and later attempt to legalize the granny unit as living space, then ...
1
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0answers
39 views

Property, income and capital gain taxes for buyer when home bought under “option to buy” contract?

Seller messed up advertising on house and needs few more months to bring few things up to code before he can sell. Hence as alternative solution seller is offering to rent out home to prospective ...
0
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3answers
254 views

How do I avoid forming a general partnership while splitting income 50-50 with someone else?

You can see a lot of context by reading here: Every month I make money from Patreon. I want to split my income with a partner. How do I avoid paying taxes on 100% of the income? I don't have an LLC (...
10
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5answers
3k views

Is there any way to form an anonymous General Partnership?

Update: When I say anonymous, I don't necessarily mean from the IRS (although that would be ideal). I mean anonymous from the general public. I don't want anyone to be able to look up my real name and ...
2
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2answers
257 views

Working from outside California for x days: do I have to pay taxes in the other state?

I'm domiciled in California, my employer's headquarters are based on California, my work office is in California and I typically work from California. If I go outside California and work from US State ...
1
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1answer
83 views

If an employee works from outside California but is declared by the company as working in CA, from how many days outside CA does it become an issue?

US companies need to know the location of their employees for tax and benefit purposes, while some US and non-US companies manage to allow some of/all their employees to work remotely. Assume that the ...
1
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0answers
80 views

need tips on how to reduce capital gains of primary residence sold for $2.2M this month in California

What all can we do to reduce the long term Fed & Calif cap gains tax on our primary residence for 21 years? All we can think of is: depreciation and expense of original landscaping. DETAILS... ...
14
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4answers
6k views

Property tax on land where you discover you can't build anything on?

California has a 0.77% tax on real estate, including land. California also has passed a bill that prevents developers and land owners from building on or near earthquake fault lines which essentially ...
0
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0answers
53 views

Can I still get unemployment benefits from the day of departure even if I'm payroll for a month after getting fired?

My company is keeping me payroll for a month instead of keeping me on giving me one-time severance. Can I still get unemployment benefits from the day of departure?
1
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0answers
44 views

Can one be a California tax resident while not being a US tax resident?

I read on Page 4 of FTB Pub. 1031 2019 (mirror) (I italicized the important passages): [Section E:] Who Are Residents and Nonresidents A resident is any individual who meets any of the following: ...
1
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0answers
28 views

How do unemployment benefits work when you move to a new state for the same employer?

I have questions about CA unemployment benefits eligibility that I’m not able to figure out from the website. In preparation of moving to East Cost location of my office, I had moved my address to ...
4
votes
2answers
159 views

Tax deduction implications when working from home

I am a W2 employee in software development in southern CA, USA. In 2020, like many, my organization is requiring me to work from home since March 1st and ongoing through the remainder of 2020. This ...
0
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0answers
210 views

Purchasing a car from a private seller in CA as a PA resident

I'm currently a resident of Pennsylvania, and I'm planning to purchase a second-hand car from a private seller in California. To my knowledge, vehicle purchase is a two-step process: Transfer the ...
1
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1answer
51 views

CA state taxes when spouse is part year resident but I'm full year resident

I'm a full year CA resident for 2019 living and working in California. My spouse was working in PA from Jan 1 - July 2019 and moved to CA after her employment ended in PA. She did not work in CA, and ...
1
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1answer
177 views

How can I manually delete or regenerate California Schedule D (540) in TurboTax?

How can I manually delete or regenerate California Schedule D (540) in TurboTax? I'd prefer not to have to start over the California tax section in TurboTax. Motivation (TL;DR: incorrect cost basis ...
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0answers
16 views

J1-Trainee California Tax Residency status

I am a Russian citizen and at the end of 2019 I came to California for a traineeship. I have income in both Russia and the United States (California). From the point of view of US federal tax law, I'm ...
0
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2answers
81 views

Is property tax assessed on real estate transaction fees as well (California)?

In California seller usually factors in many of the fees in the listing price, such as the seller and buyer agent fees. To best of my understanding these fees can amount to around 3% for each agent. ...
0
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1answer
48 views

Should I file two Schedule C when I hire employees?

According to the IRS, sole proprietor must apply for EIN the moment he hires first employee and must use this EIN for tax purposes. How Schedule C(s) should be filed if first employee is hired on June ...
1
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1answer
118 views

Is an individual who hasn't been in California in 2019 but is domiciled in California throughout 2019 a California tax resident?

I read on Page 4 of FTB Pub. 1031 2019 (mirror) (I italicized the important passages): [Section E:] Who Are Residents and Nonresidents A resident is any individual who meets any of the following: ...
5
votes
1answer
151 views

How is the profit of a sale of stock calculated for taxes if the initial investment amount is divested, and the profit remains invested

I hope the title is accurate/descriptive. Open to suggestions edits if something makes more sense after reading. The best way I can describe this is with a scenario. So: $5,000 is invested in stock A ...
0
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1answer
27 views

CA State Income Tax return CA540NR Federal Adjustable Gross Income (AGI)

I am filing my taxes as a non resident alien manually this year with using some tax software for verification. My Income is $65,000. I have a part of it exempt under US Tax treaty with India and my ...
1
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1answer
2k views

Can I withdraw EDD funds without the account number?

I have money issued from the Employment Development Department (EDD), but I don't have the Bank of America EDD Debit Card yet. Can I use my ID to go into the bank and withdraw money even if I don't ...
2
votes
3answers
31 views

Home insurance offers from Chicago Title's affiliations

After entering an escrow for a home purchase we have received an email (legit) from a company affiliated with Chicago Title with quotes. I hadn't yet come to this step mentally. We're still in the ...
0
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1answer
46 views

How prop 8 (1978: Property Tax Reduction) works in California?

If I understand correctly, then in California Prop 8 is supposed to give peace of mind to home buyers by providing temporary property tax relief in case housing market crashes soon after they bought a ...
1
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2answers
51 views

Health Insurance + Salary Calculations

Whats a good percentage of my salary to set aside for health insurance in California? I'm currently looking into a new job which doesn't offer healthcare or dental so I'm trying to figure out how my ...
0
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1answer
103 views

Are employers who got their PPP loan on a later date better off than those who got it early?

My understanding is that payroll expenses that would be eligible for PPP loan forgiveness must be incurred immediately within the next 8 weeks when PPP funds appeared in the employer's bank account. ...
0
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1answer
88 views

What is the cost of an employee for a company vs hiring a contractor?

What is a typical cost for an IT company in California to hire employee with 300K/year base salary? The company offers full health insurance coverage and 401K matching, but these are variable. To make ...
0
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2answers
102 views

Do I qualify for unemployment benefits if I forgot to file in time, but now I have found a new job?

I had lost my job in June 2019 but I missed on filling my claim in time (since I was busy looking for new jobs). I found a job, but would I still get unemployment from my time that I was unemployed, ...
-1
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2answers
32 views

How are the taxes calculated when a person lived and worked in two different states

Let's assume that in the beginning of the year a person lived and worked in one state and then relocated to another state. For simplicity, in total the person earned 200k and it is evenly distributed (...
2
votes
1answer
74 views

Do short term capital losses have to be used against long term capital gains for tax purposes?

As explained in this article, I understand that short term capital losses can be used to offset long term capital gains: Long-term gain with short-term loss Again we have to consider two ...
31
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3answers
5k views

What is the difference between salary and bonus with respect to taxes?

Let's assume one company offers 200k salary and another 100k salary and 100k bonus at the end of the year. Is there a difference for me at the end of the year (after all taxes are returned)? The ...
1
vote
1answer
452 views

Can capital losses be used to offset capital gains for California state taxes?

California treats capital gains just like normal income Suppose I have capital gains of $10k and capital losses of $8k Will this add $2k (from $10k - $8k) to my California taxable income? Or will ...
0
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0answers
44 views

How does withheld California income tax factor into estimated tax installments?

As the venerable federal Publication 505 says, the federal income tax is a pay-as-you-go tax, with two ways to pay as you go: withholding and estimated tax. For estimated tax payments, there are two ...
0
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0answers
29 views

Do I have to file a state tax amendment form too if I filed an incorrect federal return?

Last year (2019), I wrongly filed tax as resident. But I am non resident alien and F1 international student. I filed 1040x amendment form for federal tax. Now my question is that do I need file an ...
6
votes
1answer
136 views

I'm still working but my payments are deferred due to Covid19. Do I qualify for unemployment insurance benefits?

I'm self-employed in California and my biggest client (>90% of my billable hours) is not able to pay due to cash flow disruptions related to Covid19. I've agreed to continue working and billing as ...

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