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February 27, 2018

I recently read the article "Here's Why Most California Cannabis Cultivators Don't Have Licenses", by William Sumner, that was pretty interesting. Sumner laid bare some of the big problems behind why small to mid-sized cultivators are not able to get licenses. I will b...

February 8, 2018

Before I start, I would like to remind everyone that Cannabis is a Schedule 1 substance under the Controlled Substance Act and as such it is illegal under federal law. With that being said lets jump into what is CHAMPS. CHAMPS is a valuable US Tax Court case that has r...

February 8, 2018

Here we go – the Tax Cuts and Jobs Act signed in December 2017 allows (with limitations and restrictions) pass through entities to take a 20% deduction of their net reportable income as a deduction – this is known as “Section 199A”. A simplified version of the Tax Code...

January 30, 2018

There is a wide misconception that hemp is just another word for cannabis, or at the least there is no difference between the two words. However, that is wrong. Hemp and cannabis are used for totally different reasons, and hemp is not completely illegal in the governme...

January 11, 2018

The Bank Secrecy Act, enacted around 1970, necessitates those in the U.S. who receive more than $10,000 of cash in their business to report the transaction to the U.S. Treasury using form 8300. This means that a transaction of $10,000 in cash does not have to be report...

January 2, 2018

As California gets closer and closer to the new year, the state braces itself for the new adult-use cannabis industry. On January 1st, people over 21 may buy cannabis from a local and state licensed dispensary. This dispensary must have a license allowing it to sell to...

December 14, 2017

Section 280E of the IRS tax code is something almost everyone in the cannabis industry has had to deal with. If a business touches the cannabis at any point, then they must use 280E because they are considered trafficking. 280E states: "No deduction or credit shall be...

December 6, 2017

Hello everyone! Even though the blog just started recently, I am going to write an article unrelated to accounting and taxes. I want to write to talk about what consumers of cannabis can expect in California when cannabis becomes recreational. On Jan. 1, adults (21+) m...

November 28, 2017

Banking and lines of credit for the cannabis industry has been, and continues to be a huge problem. Generally, federally regulated banks are not willing to give bank accounts to cannabis companies due to cannabis being federally illegal. There is a high risk of these i...

November 13, 2017

The legalization of cannabis, both medical and recreational, in individual states has caused an explosion of cannabis related businesses, leaving entrepreneurs looking for competent and available legal and accounting help.  Unfortunately, many accountants are wary of s...

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February 8, 2018

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199A Meets 280E – Cannabis Biz and the New Tax Act

February 8, 2018

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