On Friday October 3, 2013, Governor Brown signed into law AB 1412, which provides full relief for individuals affected by the decision in Cutler v. Franchise Tax Board, where the California Court of Appeal held that the California tax incentives relating to the sale of qualified small business stock discriminated against interstate commerce and were therefore unconstitutional.
Continue Reading California Tax Relief for Sellers of Qualified Small Business Stock
Final Section 336(e) Regulations Allow Step-Up in Asset Tax Basis in Certain Stock Acquisitions
Final regulations were issued last month under IRC Section 336(e). These regulations present beneficial planning opportunities in certain circumstances.
For qualifying transactions occurring on or after May 15, 2013, Section 336(e) allows certain taxpayers to elect to treat the sale, exchange or distribution of corporate stock as an asset sale, much like a Section 338(h)(10) election. An asset sale can be of great benefit to the purchaser of the stock, since the basis of the target corporation’s assets would be stepped up to their fair market value.Continue Reading Final Section 336(e) Regulations Allow Step-Up in Asset Tax Basis in Certain Stock Acquisitions
California State Senate Passes Measure Providing Partial Relief From Cutler Decision (re: QSBS)
The California State Senate yesterday approved a measure providing relief (albeit only partial relief) to those taxpayers facing retroactive tax assessments by reason of the Cutler decision. In Cutler v. Franchise Tax Board the California Court of Appeal held that the California tax incentives relating to the sale of qualified small business stock discriminated against interstate commerce and were therefore unconstitutional.
Continue Reading California State Senate Passes Measure Providing Partial Relief From Cutler Decision (re: QSBS)