(8/28/2020) California taxpayers affected by wildfires granted an extension to file tax year 2019 California tax returns until December 15, 2020.

https://www.ftb.ca.gov/about-ftb/newsroom/news-releases/2020-10-california-taxpayers-affected-by-wildfires-granted-extension-to-file-2019-returns.html

Tax Updates

If you live in California or own property there you are likely watching the California tax changes in the legislature.

AB 1253 suggests a raise the top tax rate from 14.3% to 16.3% on income above $2 million and even higher for income above $5 million. This has the potential to raise the combined federal-California top marginal tax rate to 53.8% on wage income and 40.6% on capital gains. These tax raises would be retroactive to January 2020.

AB 2088 adds a wealth tax. It will impose a tax of 0.4% of a CA resident’s worldwide net worth in excess of $30 million or $15 million (married filing separately). Stocks, artwork, farm assets, offshore assets, pension fund, real property, and other items are included in the definition. The bill goes a step further and adds an element that allows them to tax former residents for 10 years after they leave the state.