California – Qualified small business stock gain exclusion/deferral extended, FTB provides refund guidance

October 2013

Overview

A.B. 1412 was enacted on October 4, 2013, in response to the recent Cutler decision, which found unconstitutional the state’s requirement that qualified small business stock exclusions/deferrals are limited to investments in California businesses. A.B. 1412 removes the active in-state requirements. California taxpayers should consider filing refund claims. However, certain provisions of A.B. 1412 could subject such claims to additional scrutiny.

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Peter Michalowski
National SALT Practice Leader
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