In late December, the California Franchise Tax Board (FTB) decided to cancel the Qualified Small Business Stock (QSB ) tax benefits and retroactively deny the benefits for the past five years. Yes, RETROACTIVELY! Investors and Entpreneurs alike are in for a surprise — see this article for a summary of the change in QSB benefits and how it effected its author.
Here is just one quote from the article:
“More importantly, the FTB’s radical action is going to send a terrifying message that will have the unintended consequence of driving young, growing businesses to friendlier environments. That’s the last thing that the state of California needs right now”