The 2019-20 Budget: California Spending Plan—Conformity

Oct 17, 2019 - The change in state law limits the amount that banks may deduct based on their assets. Banks with under $10  billion in assets are unaffected. Banks with more than $50  billion in assets may not deduct these premiums at all.
https://lao.ca.gov/Publications/Report/4100

The 2020-21 May Revision: Revenue Proposals in the 2020-21 May Revision

May 20, 2020 - Eliminate Capital Gains Basis Step-Up on Inherited Assets. Capitals gains from the sale of an asset are taxed as income. To determine a taxpayer ’s capital gain when they sell an asset, the sale price of the asset is compared to its “basis, ” typically the price the taxpayer originally paid for the asset.
https://lao.ca.gov/Publications/Report/4238

The 2020-21 Budget: Expanding the Minimum Franchise Tax Exemption

Mar 23, 2020 - Nonetheless, finance and real estate companies often hold significant assets. Figure  3 shows that financial companies own 55  p ercent —nearly $ 18  t rillion in 2017 —of the total assets owned by all LLCs and partnerships.
https://lao.ca.gov/Publications/Report/4207

Volatility of the Personal Income Tax Base

Feb 8, 2017 - A capital gain is the difference between the selling price of an asset (stock, bond, building, etc.) and the asset ’s original purchase price. Asset sales are not included in BEA ’s estimates of personal income or output.
https://lao.ca.gov/Publications/Report/3548

The 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - Asset Prices. Some signs suggest that two important assets —stocks and homes in certain markets —are somewhat overvalued. The price of stocks is related, over the long term, to corporate earnings. Accordingly, price-to-earnings (PE) ratios are one key metric used to evaluate stock prices.
https://lao.ca.gov/Publications/Report/3829

The 2022-23 Budget: Governor’s Office of Business and Economic Development Proposals

Feb 11, 2022 - Consequently, Visit California has increased its net assets from $20  million at the beginning of 2019 ‑20 to $58  million by the end of 2021 ‑22. Additional State Funding for Marketing Appears Unnecessary.
https://lao.ca.gov/Publications/Report/4529

Building Reserves to Prepare for a Recession

Mar 7, 2018 - Proposition  30 (201 2) e nacted, and Proposition  55 (201 6) e xtended, tax increases on high ‑income taxpayers whose income is especially sensitive to fluctuations in the economy and asset markets.
https://lao.ca.gov/Publications/Report/3769

The 2019-20 Budget: Tax Conformity

Mar 6, 2019 - Federal tax laws were changed in 1986 t o increase how quickly businesses could deduct the cost of major new assets to provide a stronger incentive for business investment and California only partially conformed to those changes in PIT law.
https://lao.ca.gov/Publications/Report/3959

The 2019-20 May Revision: Opportunity Zones

May 11, 2019 - When an individual or business sells an asset for more than they paid for it, their profit —known as a capital gain —is considered taxable income by the federal and state governments. Under the new Opportunity Zone program, taxpayers can defer federal income taxes on capital gains if those gains are invested in a business or real estate located in an Opportunity Zone.
https://lao.ca.gov/Publications/Report/4038

The 2023-24 Budget: Considering Inflation's Effects on State Programs

Nov 16, 2022 - Both types of projects may be infrastructure in the broad sense, with differences —like ownership of the asset —making one but not the other eligible for administrative augmentation. As  the Legislature considers the Governor ’s budget, we suggest it also consider which programs have preexisting processes for adjusting for inflation and which do not and whether automatic adjustments align with its priorities.
https://lao.ca.gov/Publications/Report/4647