California AB 150: What Is It and Why It Matters

In this video, we will discuss California Assembly Bill (AB) 150. Some of the things we'll cover include:
1. What is California AB 150?
2. What is the Small Business Relief Act under California AB 150?
3. Which entities qualify for AB 150?
4. Which entities do not qualify for AB 150?
5. How to calculate the benefit of AB 150?
6. When are taxes due for AB 150?
7. What are some of the downsides to AB 150?
Check out our blog posts:
What is California AB 150: SALT Workaround:
www.acapam.com/taxes/what-is-...
What is qualified business income tax deduction?
www.acapam.com/webinar/qbitax...
ACap Advisors & Accountants is a financial advisor and CPA firm located in Los Angeles, California. We are a full service wealth management and CPA firm.
Subscribe to ACap Advisors & Accountants CZcams Channel:
/ acapam .
Schedule a Consultation:
www.acapam.com/contact/
12031 Ventura Blvd., Suite 1
Studio City, California 91604
[phone]
[e-mail]
Connect with ACap on social media:
Twitter: / acapam
Facebook: / acapadvisorsaccountants
LinkedIn: / acapadvisorsaccountants
Instagram: / acapadvisorsaccountants
Fiduciary Oath/Pledge
www.acapam.com/financial-advi...
Financial Advisor in Los Angeles, CA
CPA in Los Angeles, CA
#fiduciaryfinancialadvisor
DISCLAIMER: THIS VIDEO IS FOR INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS TAX, FINANCIAL, OR LEGAL ADVICE. EVERY PERSON’S SITUATION IS DIFFERENT AND YOU SHOULD CONSULT WITH YOUR OWN FINANCIAL AND TAX ADVISOR FOR ADVICE SPECIFIC TO YOUR SITUATION. COMMENTS ARE NOT REVIEWED

[@ACapReCap]

ACap will not respond to comments seeking tax or financial advice. Please consult a CPA or CFP who is familiar with your individual circumstances.

[@Micmouse1]

Awesome thank you 🙏🏻

[@priyav3900]

Thanks for the explanation.

[@learninglessons7428]

Should there be a positive balance [ tax liability for the year was less than amount paid into AB150] what happens to it? Can you advise on any use and time limitations? Thank you.

[@auntylizzyrocks]

So basically this is double dipping. So they get the deduction and then a credit?!?

[@jerry790304]

so for W2 earner, AB150 won't apply? that's a bummer. any other SALT workaround?

[@jonlandon1]

You didn't explain how it helps get around the SALT tax limitation on the federal Sch A ? That's why I watched.

[@auntylizzyrocks]

He did. That was literally the first thing he talked about.

[@danielshin504]

How does this affect estimated quarterly payments for Q4 of 2021 (due Jan 15, 2022)? If the 9.3% prepayment is made, does this replace the Q4 payment to the California Franchise Tax Board? And this should reduce estimated taxes due to the federal government as well, right?

[@ACapReCap]

It will affect your federal estimated taxes because your ultimate pass-through federal income after the 9.3% tax will be lower. It will not replace your 4Q FTB payment nor will it reduce your CA income because the amount of the tax has to be adjusted on your CA income. We'll soon post a video on how to calculate the tax.

[@andrearosen1448]

I love the info but the background music/noise is really annoying. Why do you need it? just give us the info and lose the noise. Please....

[@ACapReCap]

Calendar year taxpayers must make the elective tax payment by 12/31/2021 to claim the deduction for 2021. You can make the payment either through your tax filing software, using FTB's Webpay system, or by check using FTB Voucher 3893. www.ftb.ca.gov/forms/2021/2021-3893.pdf