G&S Accountancy

In today’s dynamic financial landscape, the realm of business and investment stands as a beacon of potential. For many individuals, whether seasoned professionals or budding enthusiasts, this world represents a fusion of challenges and rewards. It’s a vast arena where strategic moves, backed by knowledge and foresight, can lead to significant financial gains, shaping one’s future and financial stability. But to truly excel and make the most of these opportunities, you must be well-armed with the right information. It’s not just about having capital to invest; it’s about understanding where, when, and how to invest it. Grasping fundamental financial concepts is the cornerstone of this understanding, ensuring that every decision made is not just informed but also strategic and forward-thinking. Understanding the Basics of Investment Evaluation a. Why It Matters: Every investment decision, from buying shares in a promising startup to investing in real estate or even diversifying a stock p...

When you put away money as your retirement savings, you must pay taxes on the saved amount. Fortunately, traditional retirement plans like 401(k)s and individual retirement accounts give you an upfront tax break. But these plans require you to pay taxes when you withdraw the money. Enter health savings accounts (HSA). An HSA account is a tax-deductible contribution with tax-free growth and tax-free withdrawals on certain medical expenses in retirement. The same principle applies to small business employees as well. Because of the benefits of HSA for employers and employees, HSAs are booming. According to some of the latest HSA stats, there were 35 million HSA accounts holding nearly $104 billion in assets at the end of 2022. It is projected that this figure will reach 43 million accounts with $150 billion in assets by 2025. Health Savings Account (HSA) – The Basics According to Healthcare.gov, “HSA is a type of savings account that lets you set aside money on a pre-tax basis to pay for...

As the world shifts towards a more sustainable future, California has emerged as a leading proponent of electric vehicles (EVs). With its commitment to reducing greenhouse gas emissions and promoting clean transportation, the state has implemented various initiatives to encourage the adoption of EVs. One such initiative is the California EV tax credit, a financial incentive designed to make EV ownership more accessible and affordable. This article delves into the California EV tax credit details, exploring its benefits by certified accountants , eligibility criteria, the application process, and its impact on the state’s clean energy transition. Understanding the California EV Tax Credit The California EV tax credit, also known as the Clean Vehicle Rebate Project, is a financial incentive introduced by the state to promote the adoption of electric vehicles (EVs) and fuel cell electric vehicles (FCEVs). California, known for its commitment to sustainability and its effor...

A Qualified Opportunity Fund (QOF) is an investment vehicle created as part of the Opportunity Zone program, which was established by the U.S. government in 2017. The qualified opportunity zone program aims to promote economic development and job creation in designated low-income communities, known as Opportunity Zones. In addition, the Qualified Opportunity Fund Investment is made into eligible businesses and properties located within these Opportunity Zones. It allows investors to receive certain tax benefits by investing capital gains into the fund. The goal of the Qualified Opportunity Fund is to gain tax incentives on long-term investments in economically distressed areas, fostering job creation and spur economic development. Moreover, it’s worth noting that this program looks similar to 1031 Exchanges. So, read our post on the differences between 1031 Exchanges and the Qualified Opportunity Fund Investment program. You can also consult local CPA for small business ...

For 2018-2025, the Tax Cuts and Jobs Act (TCJA) disallowed employees or individual taxpayers from taking itemized deductions. Taxpayers can take itemized deductions against their income in order to reduce their taxable income. But this is now disallowed on the updated TCJA.  Now, if employees incur business expenses, they have to have their employer reimburse these expenses. But the employer can make the reimbursement only if they have an Internal Revenue Service (IRS) accountable plan for expense reimbursement. If you run cooperation, then this change can impact you and you should consult CPA Ontario . If you don’t reimburse employees for business expenses they incurred on behalf of your business, the TCJA denies them a deduction for those expenses. Moreover, if you reimburse business expenses incorrectly, those tax-deductible reimbursements of business expenses become W-2 taxable income. Your employees incur business expenses without proper reimbursement. This can add to their p...

As the world shifts towards a more sustainable future, California has emerged as a leading proponent of electric vehicles (EVs).   With its commitment to reducing greenhouse gas emissions and promoting clean transportation, the state has implemented various initiatives to encourage the adoption of EVs. One such initiative is the California EV tax credit, a financial incentive designed to make EV ownership more accessible and affordable. This article delves into the California EV tax credit details, exploring its benefits by certified accountants , eligibility criteria, the application process, and its impact on the state’s clean energy transition. Understanding the California EV Tax Credit The California EV tax credit, also known as the Clean Vehicle Rebate Project, is a financial incentive introduced by the state to promote the adoption of electric vehicles (EVs) and fuel cell electric vehicles (FCEVs). California, known for its commitment to sustainability and its efforts to redu...

A Qualified Opportunity Fund (QOF) is an investment vehicle created as part of the Opportunity Zone program, which was established by the U.S. government in 2017. The qualified opportunity zone program aims to promote economic development and job creation in designated low-income communities, known as Opportunity Zones. In addition, the Qualified Opportunity Fund Investment is made into eligible businesses and properties located within these Opportunity Zones. It allows investors to receive certain tax benefits by investing capital gains into the fund. The goal of the Qualified Opportunity Fund is to gain tax incentives on long-term investments in economically distressed areas, fostering job creation and spur economic development. Moreover, it’s worth noting that this program looks similar to 1031 Exchanges. So, read our post on the differences between 1031 Exchanges and the Qualified Opportunity Fund Investment program. You can also consult local CPA for small business services. In t...

In 1996, California became the first US state to legalize medical cannabis. Then, in November 2016, the Adult Use of Marijuana Act legalized recreational cannabis in the state. So today, cannabis is legal in California for both medical and recreational purposes for use, sale, and cultivation. And we can say that California is a marijuana-friendly market. Despite the legalization, popularity, and growth of the industry, owners of recreational and medical cannabis dispensaries face tax-related challenges, thanks to federal laws regarding the sale of marijuana. This makes it crucial to work with CPA Ontario . The state levies a 15 percent excise tax and sales tax which can reach as high as 8.25 percent. Combining these with other types of taxes, cannabis dispensaries end up paying huge money in taxes. The Tax Dilemma for Cannabis Dispensaries in California According to federal law, cannabis is still considered a Schedule I controlled substance. But, in 2013, the Justice Department issued ...

In the realm of internationalization of domestic nonprofits, more and more US-based domestic charities are extending their operations beyond borders, reaching out to communities in need worldwide. Understanding tax deductions for a US charity with foreign operations can help: ensure compliance with IRS regulations maximize the benefits of charitable giving enhance the charitable organization’s ability to plan and execute international philanthropic activities effectively. So, in this blog, we will discuss how domestic charitable organizations can enjoy tax benefits while supporting causes overseas. Qualifying a Foreign Charitable Contribution for Tax Deductions A domestic charity with foreign operations refers to a US-based non-profit organization that extends its charitable activities beyond the national borders. This means that while the charity is registered and primarily operates within the US, it also conducts significant activities in foreign countries. Working with certified a...