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Cannabis Vs. Taxes

CANNABIS vs. TAXES Everyone wants to avoid paying taxes. All voters want to avoid paying taxes. Politicians are regularly elected based on promises they will reduce taxes. The corollary to reducing taxes is to tax someone else. The political sell is, “We won’t tax you, we won’t tax me, we will tax the guy behind the tree.” Many long-standing cannabis advocates were surprised by the success of the…

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U.S. House Votes to Legalize Cannabis

U.S. House Votes to Legalize Cannabis

U.S. House Votes to Legalize Cannabis

U.S. House Votes to Legalize Cannabis in a dramatic piece of legislation

From our friends at Cannabis Trade Federation:

Just moments ago, the U.S. House of Representative made history by passing H.R. 3884, the Marijuana Opportunity Reinvestment and Expungement Act (MORE Act). One of the two chambers of Congress is now on record in support of removing…

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CalCannabis Organic Regs

CalCannabis Organic Regs

CalCannabis Organic Regs – new regulations were issued by CalCannabis. – The California Department of Food and Agriculture (CDFA) today released modified proposed regulations for the OCal Program, a statewide certification program that will establish and enforce comparable-to-organic cannabis standards. The release of these modified regulations marks the official start of…

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Cannabis Tax Diligence - Returns

Cannabis Tax Diligence – Returns

Cannabis Tax Diligence – Returns

Cannabis Tax Diligence – Returns – We usually write articles about concepts relating to financial management, especially with respect to tax management.  Articles based on abstract financial concepts are important. As a practicing CPA, on occasion one has to “get into the dirt” and “push the digits.”

We recently had the opportunity to assist a new client who is…

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CDFA Organics Program

CDFA Organics Program -The California Department of Food and Agriculture (CDFA) recently released the modified proposed regulations for the OCal Program, a statewide certification program that will establish and enforce comparable-to-organic cannabis standards. The release of these modified regulations marks the official start of the 15-day public comment period provided under California law. All…

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REBOOTING CANNABIS in CALIFORNIA

REBOOTING CANNABIS in CALIFORNIA

REBOOTING CANNABIS in CALIFORNIA

The Santa Barbara County Grand Jury issued its 2019-2020 Final Report on June 30, 2020.  The last section of this report is devoted to the County’s actions relating to the cannabis industry.  This last section of the Report is a scathing indictment of the manner in which greed for money and power influenced the governance of Santa Barbara County in its adoption of…

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Smart People Bad Decisions!

Smart People Bad Decisions!

Smart People Bad Decisions!

Smart People Bad Decisions! – Why is California’s cannabis industry in a state of chaos 2+ years after adult-use sales of cannabis were legalized? Why did California fail so badly in transforming a stable, lightly-regulated medical cannabis industry into a heavily regulated medical and adult-use cannabis industry? Why is California’s underground cannabis industry…

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HARBORSIDE’S NEW LAWYERS

HARBORSIDE’S NEW LAWYERS

Harborside’s New Lawyers has new tax lawyers.  Harborside’s new tax lawyers have appealed the DECISION of the United States Tax Court entered October 19, 2019, that determined Harborside has deficiencies in income tax in the total amount of $11,013,236.75 for the years 2007-2012.  Harborside has appealed this DECISION to the Ninth Circuit Court of Appeals.  Harborside…

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Salvaging Equity Programs

Salvaging Equity Programs

Salvaging Equity Programs – this is our fourth article relating to the impact of the COVID-19 crisis on the cannabis industry.  This will not be our last article on this topic.  We initially anticipated only four, but we now see additional issues.

The immediate impact of this crisis was obvious.  The long-term impact of this crisis and the related depression is not at…

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Cannabis Tax Management

CANNABIS TAX MANAGEMENT

Cannabis Tax Management – this article is the third of four articles that were prompted by the COVID-19 induced depression’s acceleration of the collapse of the cannabis industry.  Our second article explained how the financial efficiency of store-front and delivery-only dispensaries is improved through operational and structural and changes to these businesses.  In a…

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280E - Not A Problem!

280E – Not A Problem!

280E – Not A Problem !

280E – Not A Problem! We have published a number of articles over the past two years that explained how the impact of taxes on the cannabis industry could be minimized. We specifically addressed Internal Revenue Code (“IRC”) §280E in a couple of articles. See Analysis IRC Sec. 280E and a post-Harborside decision discussion in Dispensary Taxes – Post Harborside. Many in…

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CANNABIS, CALIFORNIA & COVID-19

CANNABIS, CALIFORNIA & COVID-19

CANNABIS, CALIFORNIA & COVID-19

Cannabis, California, and COVID -19 This is the first of four articles we have been writing while sheltering-in-place.  This first article summarizes our views on the impact of the COVID-19 crisis on the cannabis industry with respect to financial record-keeping and tax reporting issues.  More accurately stated, we will address the impact of the economic depression…

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California Phased Re-Engagement

California Phased Re-Engagement

California Phased Re-Engagement – California ordered one of the earliest lockdowns in the country last month and has made some progress in slowing the spread of the virus. Gavin Newsom, the governor, said he did not want to have to report a surge in cases due to residents being irresponsible in the warm weather, with weekend temperatures expected to climb above 90F…

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QB Online Access for Chase Accounts

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California and  IRS COVID-19 Guidance

California and  IRS COVID-19 Guidance California COVID-19 Guidance

Gov. Newsom has issued additional guidance further defining “Essential Critical Infrastructure Workers” that designates CPA services as “essential” and necessary to help ensure the continuity of functions critical to public health and safety, as well as economic security. View the updated list of essential critical infrastructure…

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IRS Warning – Incomplete K-1’s

IRS Warning – Incomplete K-1’s

IRS Warning – Incomplete K-1’s

IRS Warning – Incomplete K-1’s – Missing, incomplete, and incorrect Schedules K-1 will limit the IRS’s ability to identify potential noncompliance, resulting in the loss of tax revenue and inequitable treatment of taxpayers, as well as potentially creating unnecessary work and increasing taxpayer burden.  We determined that improvements in the receipt and storage of…

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Donations - Cannabis and Product

Donations – Cannabis and Product

Donations – Cannabis and Product

Donations – Cannabis and Product -Beginning March 1, 2020, cannabis retailers may provide free cannabis or cannabis products to qualified medicinal patients or their primary caregivers. This change is due to the adoption of Senate Bill 34, which also exempts these donated items from excise, sales and use, and cultivation taxes.

Licensed cultivators, manufacturers,…