California does not automatically follow the new federal tax law
California's January 1, 2025 conformity date generally excludes the later-enacted One Big Beautiful Bill Act, so federal benefits need a separate state review.
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Practical articles about California and federal tax changes, accounting, business structure, and the numbers behind your next move.California still does not allow federal bonus depreciation
Federal full expensing can create a first-year California addback and a separate state basis that must be tracked until disposition.
Read articleCalifornia's Section 179 limit is far below the federal limit
California's lower deduction and phaseout thresholds make a separate asset-level state calculation essential.
Read articleCalifornia has no federal-style qualified business income deduction
The federal Section 199A deduction does not reduce California taxable income, affecting estimates and owner-level projections.
Read articleFederal opportunity-zone benefits may not carry over to California
A federal gain deferral may still create current California tax and a separate state basis schedule.
Read articleCalifornia's PTE elective tax continues—with a new 2026 consequence
The election now continues through 2030, while a missed or short June 15 payment can reduce owner credits.
Read articleA California LLC may owe both the $800 annual tax and an LLC fee
The annual tax and total-income-based LLC fee are separate obligations with different calculations and payment timing.
Read articleCalifornia estimated-tax installments do not follow four equal quarters
The standard individual schedule is 30%, 40%, 0%, and 30%, so copying the federal quarterly pattern can create an early shortfall.
Read articlePayments to nonresidents can create a California withholding obligation
California-source contractor, rent, royalty, and pass-through payments can require payer-level withholding and Form 592 reporting.
Read articleCalifornia sales-tax duties can follow the delivery address
Economic nexus, district rates, marketplace sales, and exemption records require a channel-by-channel reconciliation.
Read articlePermanent 100% bonus depreciation changes equipment planning
The law restored permanent full expensing for eligible property acquired after January 19, 2025, but acquisition, placed-in-service timing, and asset classification still matter.
Read articleThe higher Section 179 limit needs a purchase-by-purchase review
The federal limit increased to $2.5 million, with a phaseout beginning above $4 million of eligible property placed in service.
Read articleDomestic research costs may be deductible again—but the transition choice matters
Current deductions returned for eligible domestic research costs, while prior balances, foreign research, and accounting-method procedures require coordination.
Read articleThe business-interest limitation again uses an EBITDA-style calculation
Depreciation, amortization, and depletion return to adjusted taxable income for tax years beginning after 2024.
Read articleThe paid family and medical leave credit is permanent and broader
Expanded employee eligibility and qualifying insurance premiums may make the credit more practical for small employers with the right written policy and records.
Read articleThe federal Form 1099-K threshold returned to $20,000 and 200 transactions
A higher reporting threshold reduces forms for some sellers, but taxable receipts still must be reported and reconciled to processor activity.
Read articleNew tip and overtime deductions make payroll detail more important
The temporary deductions do not eliminate payroll tax and do not cover every dollar labeled as tips or overtime.
Read articleThe higher SALT deduction cap creates a new timing review for California taxpayers
The 2026 federal cap of $40,400 may help itemizers, but income phase-downs, payment timing, and alternative minimum tax still matter.
Read articleThe new car-loan interest deduction has narrower rules than the headline suggests
The temporary deduction requires a qualifying new personal-use vehicle, an eligible secured loan, U.S. final assembly, and income below the phaseout range.
Read articleExpanded HSA eligibility reaches more plans and direct primary care arrangements
Permanent telehealth relief and new 2026 rules for certain bronze, catastrophic, and direct primary care arrangements expand HSA planning options.
Read articleThe five numbers every business owner should review monthly
Revenue alone does not tell you whether the business is becoming stronger. A focused monthly review can reveal what needs attention before the problem grows.
Read articleWhy estimated taxes should be reviewed before the quarter ends
Estimated-tax planning works best when it follows current business results rather than last year’s assumptions.
Read articleWhen separate companies need one financial view
Separate books are essential, but owners often need a connected view to understand total cash, obligations, and performance.
Read articleForm 8824 and the records behind a like-kind exchange
A useful filing starts with dates, basis information, closing statements, qualified-intermediary records, and a clear view of any cash or non-like-kind property received.
Read articleWhen a property sale may reach Form 4797
Sales of business or rental property can involve depreciation history, recapture, installment reporting, and more than one tax character.
Read articleS corporation compensation deserves a year-round review
Payroll, distributions, shareholder health insurance, and estimated taxes should be reviewed together before year-end.
Read articleWhat belongs in an R&D credit readiness file
A practical look at the project, activity, wage, supply, contractor, and ownership records that support a Form 6765 analysis.
Read articleFour financial reviews for an owner-operated medical practice
Connect collections, payroll, owner compensation, operating margin, cash reserves, and tax estimates in one recurring review.
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