Delucchi v. Franchise Tax Board

Opinion

DAVIS, J.

Plaintiffs (the individuals, couples, and other entities listed in exhibit A of the complaint as the signatories on 58 state tax returns) brought the present action for a refund of approximately $17,000 each in state income tax that they had paid on the balance of proceeds received in 1995 from their 1986 sale of stock. The trial court ruled in favor of defendant Franchise Tax Board (FTB) on cross-motions for summary judgment on stipulated facts. Having timely appealed from the judgment, plaintiffs contend that the FTB must apply the exclusion from taxable income that existed…