Tax reform impact
#11
Franchise Tax Board in California is like a Gila monster if it thinks it can tax you. It clamps its jaws into you and will not let go.
I parked a personal aircraft at a California airport for a year while I went to a one year civilian graduate school tour of duty ON AIR FORCE ORDERS out of Wright Patterson AFB. The USAF paid out of state tuition costs for me and after getting a Master's I moved on to my next assignment.
I got a total of five letters, the last three threatening wage garnishment AND a lien on the aircraft if I didn't pay them excise tax on the AC, despite each letter being answered by first the base JAG x2, the JAG at Wright-Patt, the JAG at my MAJCOM, and finally the HQ USAF legal people at Bolling citing chapter and verse of the Soldiers and Sailors Relief Act informing them that their claim on me was not consistent with federal law and that I owed them nothing and that under no circumstances would the Air Force permit them to garnish my wages and would in fact go to the FAA AND federal court if necessary on my behalf for relief if an attempt was made to put a lien on the aircraft in defiance of the Soldiers and Sailors Relief Act.
The whole process took about 18 months, almost twice as long as I had lived in California, and I never did receive any final acknowledgement that From the Franchise Tax board that I did not owe them money. The dunning letters just stopped.
If you get based in CA, I'd really suggest commuting.
I parked a personal aircraft at a California airport for a year while I went to a one year civilian graduate school tour of duty ON AIR FORCE ORDERS out of Wright Patterson AFB. The USAF paid out of state tuition costs for me and after getting a Master's I moved on to my next assignment.
I got a total of five letters, the last three threatening wage garnishment AND a lien on the aircraft if I didn't pay them excise tax on the AC, despite each letter being answered by first the base JAG x2, the JAG at Wright-Patt, the JAG at my MAJCOM, and finally the HQ USAF legal people at Bolling citing chapter and verse of the Soldiers and Sailors Relief Act informing them that their claim on me was not consistent with federal law and that I owed them nothing and that under no circumstances would the Air Force permit them to garnish my wages and would in fact go to the FAA AND federal court if necessary on my behalf for relief if an attempt was made to put a lien on the aircraft in defiance of the Soldiers and Sailors Relief Act.
The whole process took about 18 months, almost twice as long as I had lived in California, and I never did receive any final acknowledgement that From the Franchise Tax board that I did not owe them money. The dunning letters just stopped.
If you get based in CA, I'd really suggest commuting.
#12
Prime Minister/Moderator

Joined: Jan 2006
Posts: 45,127
Likes: 796
From: Engines Turn or People Swim
Depends on how much you make. If you're a regional FO, you can probably scam the system for more benefits than you pay in taxes, especially if you have kids while there.
As they spool up taxation of higher income brackets, and everyone who can flees, they are getting ever more diligent about harvesting those who remain. Silicone Valley is the only thing keeping their welfare-state budget afloat... one big tech industry setback and they are screwed with a capital S. I'll have to flee at that point because they'll come looking to me to cover billions in red ink.
As they spool up taxation of higher income brackets, and everyone who can flees, they are getting ever more diligent about harvesting those who remain. Silicone Valley is the only thing keeping their welfare-state budget afloat... one big tech industry setback and they are screwed with a capital S. I'll have to flee at that point because they'll come looking to me to cover billions in red ink.
#13
These days a single regional FO is going to be at the 9.3% marginal rate. While on probation their first year.
California - Single Tax Brackets
Tax Bracket Tax Rate
$0.00+ 1%
$8,015.00+ 2%
$19,001.00+ 4%
$29,989.00+ 6%
$41,629.00+ 8%
$52,612.00+ 9.3%
$268,750.00+ 10.3%
$322,499.00+ 11.3%
$537,498.00+ 12.3%
$1,000,000.00+ 13.3%
California - Married Filing Jointly Tax Brackets
Tax Bracket Tax Rate
$0.00+ 1%
$16,030.00+ 2%
$38,002.00+ 4%
$59,978.00+ 6%
$83,258.00+ 8%
$105,224.00+ 9.3%
$537,500.00+ 10.3%
$644,998.00+ 11.3%
$1,000,000.00+ 12.3%
$1,074,996.00+ 13.3%
California - Single Tax Brackets
Tax Bracket Tax Rate
$0.00+ 1%
$8,015.00+ 2%
$19,001.00+ 4%
$29,989.00+ 6%
$41,629.00+ 8%
$52,612.00+ 9.3%
$268,750.00+ 10.3%
$322,499.00+ 11.3%
$537,498.00+ 12.3%
$1,000,000.00+ 13.3%
California - Married Filing Jointly Tax Brackets
Tax Bracket Tax Rate
$0.00+ 1%
$16,030.00+ 2%
$38,002.00+ 4%
$59,978.00+ 6%
$83,258.00+ 8%
$105,224.00+ 9.3%
$537,500.00+ 10.3%
$644,998.00+ 11.3%
$1,000,000.00+ 12.3%
$1,074,996.00+ 13.3%
#15
Prime Minister/Moderator

Joined: Jan 2006
Posts: 45,127
Likes: 796
From: Engines Turn or People Swim
You can easily be based in CA without paying any taxes (on jets), you just have to make sure you don't slip into any of the traps.
#19
Prime Minister/Moderator

Joined: Jan 2006
Posts: 45,127
Likes: 796
From: Engines Turn or People Swim
I always tell people to call lawyer, But if it has to do with aviation there are people around here who can guess what the lawyer will say...
Yeah definitely don't ask a pilot about that. Call your lawyer instead
If you get good career advice (probably from a pilot), then this will take care of itself, and you can afford a professional financial planner to fine tune things for you. Eventually he'll tell you that maxing out your 401k is a bad idea, but you'll learn about that later on.
Yeah definitely don't ask a pilot about that. Call your lawyer instead

If you get good career advice (probably from a pilot), then this will take care of itself, and you can afford a professional financial planner to fine tune things for you. Eventually he'll tell you that maxing out your 401k is a bad idea, but you'll learn about that later on.
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atpcliff
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04-21-2008 05:46 AM



