Support The Gardner Amendment Addressing 280E

Weed News:  “Congress is currently in the middle of a tax overhaul push. To be upfront and clear, I do not support the tax proposal. I think that the math is clear that it will overwhelmingly benefit the richest of rich people, and at the expense of the rest of Americans. The United States House of Representatives has already passed their version of a tax bill, and the Senate is looking like it’s getting closer to a vote of its version of a tax bill with every passing minute.  There is one silver lining in the tax bill that is worth supporting, even if you are like me and you don’t support the overall tax plan. Colorado Senator Cory Gardner has introduced an amendment that alleviates the 280E tax penalty in the federal tax code.”

By |2017-12-05T18:10:16-07:00November 30th, 2017|Stories & Articles, Tax Issues, Washington News|Comments Off on Support The Gardner Amendment Addressing 280E

Marijuana Stores Would Be As Profitable As Starbucks If Not For Tax Laws

Freshtoast:  “Arcane rule in IRS code prevents cannabis companies from legitimate deductions.  Marijuana retail shops are more profitable than the average Starbucks store if only if they were taxed the same way as traditional retailer, according to a report published by Arcview Market Research.”

By |2017-12-05T18:55:02-07:00November 23rd, 2017|Stories & Articles, Tax Issues|Comments Off on Marijuana Stores Would Be As Profitable As Starbucks If Not For Tax Laws

Arizona Agency Defies DEA, Okays Cannabis Extracts for Foster Parents

Phoenix New Times:  “A new rule on foster parenting released by the Arizona Department of Child Safety still discriminates against cannabis patients, but it defies federal authorities in approving cannabis extracts.  The rule codifies a September decision about a possible foster-care license for a woman who treats her adopted 12-year-old son’s self-injuring behavior with cannabidiol (CBD).  Phoenix New Times received a copy of the ruling last week after a public-records request.”

By |2017-12-05T19:00:44-07:00November 20th, 2017|Legal Issues, Stories & Articles|Comments Off on Arizona Agency Defies DEA, Okays Cannabis Extracts for Foster Parents

Structuring the Ownership of Marijuana Businesses to Minimize Tax Impact

The CPA Journal:  “The IRS has made it daunting for an investor to make an after-tax profit in the marijuana business. Aside from the criminal laws, which are essential to know, trying to understand the tax laws can be a challenge. It is therefore critical to consider the right ways to structure the ownership of these businesses in order to reduce the tax impact for investors.”

By |2017-11-04T09:16:19-07:00November 4th, 2017|Stories & Articles, Tax Issues|Comments Off on Structuring the Ownership of Marijuana Businesses to Minimize Tax Impact

Deductible Business Expenses for Marijuana Dispensaries

The CPA Journal:  “The biggest hurdle for dispensaries is the current tax framework, which treats marijuana growers more adversely than both legal and illegal businesses alike. Under Internal Revenue Code (IRC) section 61, unless specifically excluded, all sources of income are taxable, regardless of their origin. Under the recovery of capital doctrine, taxpayers are allowed to recover their cost of goods sold. In addition, IRC section 162 provides a current deduction for all ordinary and necessary business expenses. . . . . There is, however, an additional limitation for taxpayers engaged in the trafficking of controlled substances. IRC section 280E denies all ordinary and necessary business expenses paid or incurred in connection with the sale or trafficking of controlled substances listed on Schedule I or II of the Controlled Substances Act. Currently, 21 USC 812(c)(10) lists marijuana as a Schedule I drug. Furthermore, the courts have held that the sale of marijuana constitutes trafficking, regardless of legality at the state level. Thus, the ordinary and necessary deductions available to most businesses (both legal and illegal) are denied to the marijuana industry.”

By |2017-11-04T09:11:27-07:00November 4th, 2017|Stories & Articles, Tax Issues|Comments Off on Deductible Business Expenses for Marijuana Dispensaries

Navajo County Judge Declares Pot Extract Illegal

Tucson Weekly:  “Navajo County Superior Court Judge Dale Nielson has declared extracts illegal.  The basis for his stance concerns the definition of cannabis in Arizona state law. The state’s statutes define cannabis as “the resin extracted from” marijuana plants, and pot laws written more than 50 years ago classify cannabis as a narcotic.  The 2010 Arizona Medical Marijuana Act, however, has no definition for cannabis, raising inconsistencies about what patients can buy from dispensaries. It does have language about mixtures and other preparations, but Nielson decided this only applies to the dried flower.”

 

By |2017-11-04T10:19:12-07:00November 2nd, 2017|AZ Marijuana Law Lawsuits, Stories & Articles|Comments Off on Navajo County Judge Declares Pot Extract Illegal