Exemptions from minimum franchise/annual tax

(3.5-minute read)

FTB notices may lead taxpayers to pay the tax even though they are exempt.

Recently we’ve seen clients receiving notices and information from the FTB stating that they owe the $800 minimum franchise/annual tax even though they qualify for an exemption. This seems to be occurring in two different scenarios:

Ying Wang, Financial Advisor

Ying has been in the Financial Service industry since 2003 and quickly developed a passion for investments as he started trading stocks. After being in retail banking for 6 years, he decided to pursue an Advisor role in 2009 right in the middle of the recession.

Second Round of Golden State Stimulus Payments Authorized.

The new round is available to taxpayers with AGI of $75,000 or less.

SB 139 authorizes another $8-billion-plus in Golden State Stimulus (GSS) rebate payments to be made to qualified taxpayers who have AGI of $75,000 or less. As discussed below, the amount of the payment is dependent on a variety of factors but is capped at $1,100.

Tax Savings for Married Taxpayers Claiming Section 179 Deductions

If you are married, you need to know three special rules that can benefit your Section 179 deductions:

1. The Section 179 business income limit includes W-2 income earned by both you and your spouse.

2. Section 179 expensing treats you and your spouse as one taxpayer.

3. If you and your spouse file separate returns, you need to make an overt election of how you are going to share your Section 179 deductions.