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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Itemizing property tax deduction on California state taxes?

I'm trying to understand if in California you are limited to the same $10k federal limit on property tax deduction. The only CA government info I can find is here Line 5e The federal deduction for ...
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1 answer
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Schedule CA 540 Part I Section A: what role do the little 'a' rows serve?

I'm a bit baffled looking at the Schedule CA 540 form in its Part I Section A set of rows. There's the rows that form the matrix against the various major columns A, B and C, but there's also this set ...
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How to attach amended federal tax return to fresh California tax return?

California income tax (paper Form 540) requires attaching a copy of the taxpayer's federal return. If, when filing a given year's California Form 540 for the first time (not amended), the federal ...
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4 votes
1 answer
170 views

Does California double-tax the portion of incentive stock options which are subject to AMT?

Consider the following scenario: In 2020, Alice vests and exercises ISOs at $1 strike price, $3 FMV. Under California AMT, she generates $2/share of gain. Alice exercises enough shares to owe a ...
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9 votes
5 answers
3k views

Understanding underpayment penalty: implications and how to avoid it in the future

Here is a small explanation of my situation which I hope will help to understand my question: I am a full time employee who lives in California. Each year I get a W2 from my employee and 1099 from my ...
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1 vote
1 answer
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Cell Tower Rental Fees Transfer to New Home Community

I am about to move into a new home community that has a cell tower placed prior to the land being acquired for homebuilding. In its previous life, this piece of land was owned by a non-profit. ...
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1 answer
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International Non-Resident Spouse CA Tax Filing and Community Income

Indian citizen working and living in California since 2019 and considered a CA resident for tax purposes. Got married in Nov 2021 to my wife who lives in India. She did not join me in the US in 2021 ...
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How to calculate or define moving expenses for California resident tax deduction?

Situation: I meet the distance & time test for California Moving Expenses Deduction. Move was within California, in 2021. Single person household. The distance one way is 181 miles, using own ...
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16 votes
5 answers
6k views

Is it typical to start charging HOA fees before a community is fully built?

I am currently in the process of buying a home at a new community. My home is part of phase 1 out of 4 phases and will be ready for move-in prior to the completion of the entire community. But the ...
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1 vote
1 answer
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Mella Roos Disclosure Requirements (California)

I live in Washington State and I’m in the process of helping my mom purchase a home (I’m paying, but she will be living in it). Given the competitive market, we recently put in a non-contingent offer ...
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0 votes
1 answer
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Do you qualify for Medi-Cal if you are wealthy and just don't work?

If I'm reading the descriptions of Medi-Cal correctly, low income alone is enough to qualify you for free medical coverage. So, if you are taking a sabbatical, working on your own startup (that isn't ...
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1 answer
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Can being categorized as a "US resident" by the bank make me a tax resident in CA or US?

According to IRS, I was never a US tax resident. But there is a US bank that thinks I'm a resident in the US. I didn't update my info after leaving. I did fill out W8. I also filled out after leaving, ...
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1 vote
1 answer
240 views

Splitting equity among domestic partners when one partner pays the full downpayment

My partner and I are looking to buy a home together in California and set up a contract for splitting the equity. I would pay the 20% downpayment on my own, and thereafter my partner and I would split ...
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2 answers
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How is it possible for an F-1/F-2 visa holder establish a company in the US?

If someone with the F-1(student) or the F-2(Student's dependent) visa is in the US. how can he establish a company in the US? Can he do it standalone(I mean register a company with his own with no ...
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-1 votes
1 answer
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Are businesses required to pay more than a specified minimum wage in respect to each job title in US? [closed]

Are there any laws about the businesses that mandates them to pay at least a minimum specified wage to their employees? I mean something like: A CEO should at least has $5k/month, or an engineer ...
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4 votes
2 answers
76 views

Should I realize short term gains to make use of short term losses or offset against long term gains?

Similar to this question, but I’m trying to understand the strategic value of using ST losses. I currently have -$20k in ST losses and +$100k in LT gains. Per my math, if I use it against +$20k in ST ...
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0 votes
1 answer
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Can a US LPR who changed their residency from California to Washington between Nov 2021 and summer 2022 opt ​out of the Washington long-term-care tax?

Can a US lawful permanent resident who changed their residency from California to Washington state between November 2021 and summer 2022 opt out of the newly established long-term-care payroll tax? E....
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0 votes
0 answers
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Does California Homeowner's Insurance provide Workers' Compensation Insurance for a Nannyshare hosted in another family's residence?

If a nanny in California cares for the children of Family A & Family B, primarily within the home of Family A, will Family B's homeowner's insurance include workers' compensation insurance for the ...
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0 votes
1 answer
192 views

I have 5 cars and two drivers, can I cover one car with high liability and the rest with the minimum? California

We are family with lots of cars, 5 and only two drivers. We switch off depending on what we are doing. Commuting, I drive my 2 seater and wife drives her suv. Family outing we take our big sedan, trip ...
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0 votes
1 answer
68 views

Will stock options continue to vest if an employee goes into State Disability Insurance (SDI)?

If an employee in a publicly traded company needs to go on SDI (to get treatment) will the employee continue to vest options (ISOs, RSUs)? Is SDI like a sabbatical from a company's perspective where ...
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0 votes
1 answer
109 views

purchasing a car with a trial period

A stranger is selling their car for $5000 and I like it for that price. But, instead of a straight purchase, I want to arrange a deal in which I pay $5000 in full now (without any loans) but can ...
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10 votes
2 answers
290 views

What do I do after requesting and receiving a debt validation letter for a medical debt I don't recognize?

I received a debt collection call a few months ago from a professional debt collector for a debt I didn't recognize, followed by a written notice. I wrote back that I dispute the debt and requested ...
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2 votes
1 answer
236 views

What should my state tax withholdings be? I live in VA and work remotely for a CA company

I work remotely for a company in California, but I'm a Virginia resident 100% of the time. This is my first year working for this company. Last year, I claimed 1 exemption on my VA taxes (myself). For ...
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2 votes
2 answers
96 views

Is the donation of billable or paid time of a contractor or employee tax-deductible?

In California, USA, for federal and state taxes, are services performed by a paid employee or contractor (who receives compensation for that time from the company as regular/overtime wages/salary or ...
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1 vote
1 answer
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How to respond to CA 2020 tax penalty notice? I forgot to indicate I had health coverage

I received this mail yesterday: PICTURE OF MAIL I am a student with F1 visa status and filed both federal and state taxes for 2019 and 2020. I do have an external scholarship that includes a very good ...
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3 votes
1 answer
242 views

Why did I receive tax penalty on paid family leave from the California tax board?

I just received a notice from California tax board that says I owe state tax on the deduction I claimed in 2017 for paid family leave. This was filed through turbotax so I assumed it was accurate. I ...
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0 votes
0 answers
20 views

CA Tax return change - missing 3853

I am a non resident for the entire year in the US for the year 2020. I however do have some residual income coming in from shares vested on me previously when I was working in the US. So I continue to ...
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0 votes
1 answer
91 views

Which mailing address to use for disputing a California Franchise Tax Board 5818 Notice?

I just got an FTB 5818 Notice saying that I don't have Health Insurance. I am planning to dispute it by sending in my 1095-B. Question: Which mailing address should I be using: Franchise Tax Board PO ...
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0 votes
3 answers
376 views

After paying off your home, could you sell it to a confidant for $1, then buy it back for $1 in order to get lower property taxes in CA?

In California, property taxes are based upon the price that you paid for your home. Would it be legal, or even feasible, that when you finally pay off your mortgage, that you sell your home to a ...
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4 votes
2 answers
180 views

Can I protect jointly owned assets from my spouse's professional liability? [closed]

My wife is a medical resident. She regularly makes complex decisions that could kill someone while she is chronically sleep deprived. Obviously, this is dangerous, but it's a nationwide problem that I ...
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2 votes
0 answers
23 views

Are state disability benefits taxable in tax year when you were eligible for them, or approved for them, or when benefits were actually paid?

Imagine that someone gave birth on November 5th, 2020. California allows moms to take off up to 8 weeks of disability insurance benefits. Are such state disability insurance benefits taxable in 1) tax ...
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2 votes
1 answer
46 views

What re the federal and Calif. solar tax credits or deductions for a solar power systems and batteries purchased in California in year 2019 and 2021?

Bought a new solar power system for my primary residence for $65k in July 2019. Then moved this year and bought a $90k system Nov 2021. I'm using Turbo Tax.
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0 votes
1 answer
30 views

Webpay for CA tax return not allowed owing to absence of previous records

I want to pay to CA state through web pay my tax due for 2020, but I am not allowed to register because I don't have a previous tax return. I am filing as non-resident alien. How can I make this ...
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0 votes
1 answer
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Clarification regarding CA source income for non-resident

I am filing taxes for 2020 as CA non-resident because I have provided a CA address on my US trading account. I have foreign earned income, foreign interest, dividends from the trading account, and US ...
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1 vote
1 answer
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Can one qualify for the Young Child Tax Credit if they don't qualify for the Earned Income Tax Credit

In USA California State income tax if one knows they don't qualify for the Earned Income Credit (EITC) can they also deduce that they are also not eligible for the Young Child Tax Credit (YCTC)? ...
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2 votes
1 answer
110 views

Transfer 529 Funds from Child's Account to Pay Parent's Existing Student Loans?

We have been saving a little every month into our daughter's 529 account since she was born. She is now 10 years old, and the account balance is about $25,000. We intend to continue to make regular ...
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2 votes
1 answer
341 views

Itemizing charitable deductions on California taxes while taking standard deduction + 2020 charitable deduction on federal taxes

This question is pretty specific, but it's worth a try. Apologies in advance for the length; I'm aiming to be as clear as possible. In 2020, as a provision of the CARES Act, it is possible to take the ...
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4 votes
2 answers
188 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. ...
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2 votes
1 answer
145 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 ...
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2 votes
0 answers
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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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1 vote
2 answers
119 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 ...
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0 votes
0 answers
107 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 ...
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0 votes
2 answers
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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 ...
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1 vote
1 answer
62 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 ...
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-1 votes
1 answer
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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 ...
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12 votes
2 answers
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 ...
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0 votes
0 answers
31 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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1 vote
2 answers
100 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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0 votes
2 answers
274 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 ...
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2 votes
1 answer
91 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?
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