Since 1993, California had provided its own version of a federal income tax law that allowed for the sale of qualified small business stock to be excluded as a tax deduction. This was only for company’s who had at least 80% of their payroll and assets within California. The Franchise Tax Board eliminated this tax deduction for those who invest, buy or sell startups, and began billing those who had claimed this deduction anytime between 2008 and 2013, which has caused major turmoil for small business owners.
Attorney Marty Dakessian was interviewed by the LA Daily Journal regarding this significant tax issue and his opinions on the matter.
You can read the full article here: LA Daily Journal "Tax Board's Retroactive Ruling Irks Startup Investors, Advisers"