canna law blog

California Cannabis Taxes and IRC Section 280E

In California, the first Cannabis Tax Return is due on April 30, 2018 and many of our clients are now working through the issues related to the Cannabis Cultivation and Excise Tax. In addition, many marijuana businesses must file their first 2018 estimated federal tax payment by April 17, 2018. To estimate taxable income, every

canna law blog

California Sales Tax: Good News for Cultivators!

California cannabis businesses are now acquiring temporary permits to enter the new cannabis marketplace made possible under MAURSCA. As part of that process, all cannabis businesses have been introduced to the California Department of Fee and Tax Administration (“CDTFA”), the agency tasked with administering the new cannabis cultivation taxes and sales tax. The CDTFA administers

canna law blog

Tax Reform and Cannabis: What You Need to Know

On December 22, 2017, the Tax Cuts and Jobs Act (“The Act”) otherwise known as PL-115-97, was signed into law. The Act is the most significant overhaul of the U.S. Tax Code since 1986 and is effective beginning in 2018. Accordingly, cannabis businesses need to understand now how the new tax law affects their business.

canna law blog

Cannabis Taxes and Section 280E: Canna Care v. The IRS

The United States Court of Appeals for the Ninth Circuit recently ruled on its second tax case regarding IRC §280E.  Decisions from the Ninth Circuit are significant as they apply to the cannabis-friendly states of Alaska, California, Nevada, Oregon; and Washington. In Canna Care vs. the Commissioner, the Court of Appeals upheld the United States Tax

canna law blog

Your Marijuana Business: What’s it Worth?

So you went and started a cannabis business. Congratulations! Now, here’s a question for you: what’s it worth? And if you don’t mind us asking: how did you make that determination? Is it supportable? Recently, we have written about the future of cannabis funding and the basics of investment rounds. The valuation question looms large

canna law blog

The Trouble with Section 280E and Marijuana Businesses

When it comes to marijuana and taxes, there is no bigger buzzword than “280E.” However, there is still a lot of confusion about what exactly 280E is and does. In reality, section 280E is a single sentence of the Internal Revenue Code. It states: “No deduction or credit shall be allowed for any amount paid

canna law blog

Marijuana Taxation: 280e Ain’t Getting Better Anytime Soon

The marijuana industry is finally beginning to experience meaningful movement on the national level, slowly chipping away at federal prohibition. With the most recent Cole Memo, FinCEN guidelines, legalization in two additional states and D.C., improving Veteran access to cannabis for medical use, and a tiny take-down of at least one significant federal barrier to marijuana