G&S Accountancy

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...

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 ...