Coalition for Cannabis Scheduling Reform’s Post

🚨 IRS says: ''Not So Fast Cannabis'' 🚨 Last year, rumors #abounded in Cannabis #CFO circles there was a work around to 280E. Some self-satisfied #backslapping, and self-congratulations #ensued for those who said they found this #elusive work around. But the celebrations were #premature. The Internal Revenue Service has just reinforced that Section #280E is still in full effect, sending shockwaves through the #Cannabisindustry. They posted it on their website Friday evening: https ://https://lnkd.in/gU7sAB-Y The IRS says: ''Marijuana remains a Schedule I controlled substance; Internal Revenue Code Section 280E still applies.'' Despite some multi-state operators (MSOs) like Trulieve, Curaleaf, Cresco Labs, and Green Thumb Industries betting on #taxrefunds, the IRS clarified these claims are #invalid and will be invalidated. This announcement underscores that until Cannabis is de/rescheduled federally, Section 280E remains a significant #challenge. Innovative tax strategies must be grounded in legal and financial prudence so stay informed to navigate these hurdles, subscribe to highlycapitalized.com and never miss breaking news about taxes in #Cannabis

The validity of 280E has consistently been challenged by many taxpaying companies. Despite recent advancements in circumventing certain restrictions, rescheduling cannabis and completely eliminating 280E tax burdens are crucial for cannabis operators to unlock their maximum growth potential.   Check out this piece from Benzinga Cannabis where I go into more detail on 280E. https://lnkd.in/eqXgRZ3v

For many states, taxing #cannabis is brand-new territory. Taxing recreational cannabis is sometimes seen as a potential gold mine for tax revenue, but the reality is more complicated. Watch: Green Rush: Principles for Taxing Cannabis https://hubs.ly/Q02zSGFh0

For many states, taxing #cannabis is brand-new territory. Taxing recreational cannabis is sometimes seen as a potential gold mine for tax revenue, but the reality is more complicated. Watch: Green Rush: Principles for Taxing Cannabis https://hubs.ly/Q02ttNsf0

It's always great to see improvements in tax #policies for #cannabis operators in difficult markets. Hopefully more states will learn from these mistakes and avoid the "potency tax" moving forward! What do you think about this move and the NY cannabis industry as a whole? Comment below!

On May 16, 2024, the Drug Enforcement Agency (DEA) officially proposed to reschedule cannabis as a schedule III, instead of a schedule I, controlled substance. This rescheduling will alleviate some difficult operational limitations and financial accounting that cannabis-related businesses have had to endure to avoid a disallowance of their business expenses as deductions for federal income tax purposes. In connection with this new federal government approach to cannabis, Senator Cory Booker has proposed new federal excise tax legislation for cannabis that, if enacted, should spur U.S. development of the cannabis industry. I explore these new developments in the attached Legal Update.

Are you a new entrant into the cannabis industry, but have no understanding of the history of cannabis prohibition or where you stand in that timeline? Do you believe that the government will play fair and the media will remain neutral? Are you spending a lot of money on lobbying and industry association memberships, but receiving no tangible returns? If you're starting a cannabis company, do you just grab some growers and hope for the best, or do you speak with people who have been involved in the legalization process? If you're looking for a wide perspective on the process of cannabis legalization and change, drop me a line. Let's discuss how you can gain a deeper understanding of the industry and ensure a successful venture.

WeHo Issues Cannabis Tax Rebates, but Debates Over Industry Regulations Linger. Read about the issues here: https://lnkd.in/gnKTqJhD #cannabisculture #cannabisbusiness #dispensary #cannabislounge #regulation #weho #WestHollywood #taxrebate

In December 2023, Catalyst Cannabis Co. filed a significant lawsuit which is shedding light on California's stringent cannabis regulations and taxes. Here our partners at 420 CPA (ABFinWright, LLP) call out the specific regulations like Regulation 3802 and amendments to Regulation 3700, sparking a broader conversation about the necessity for fairness and transparency in the state's cannabis industry. Read on below to find what the say in the article, and how this underscores the urgent need for a more balanced regulatory landscape. They outline how Elliot Lewis's work for Catalyst is good for the well-being of the entire cannabis community. For help on your cannabis company's financial needs, contact info@420CPA.com or contact @Stephanie Jeffries in our business development team. #420CPA #cannabis

MAJOR ANNOUNCEMENT for companies in the #cannabis industry! This week the DEA stated that cannabis will change from Schedule I (e.g. heroine) to Schedule III! This will have a monumental impact to the industry including #taxes and the notorious Section 280E. Cannabis companies need to focus on opportunities to optimize tax positions for this change. See below for just a few (👇). Send me a message to discuss how you can take advantage of all possible tax minimization strategies! 👉 Ordinary and necessary business expenses would be deductible to cannabis companies as IRC Section 280E would no longer apply 👉 Property and equipment would be eligible for bonus depreciation 👉 Inventory costing methodologies – Opportunities may allow for exclusion of certain expenses from cost of goods sold and immediate deduction through operating expenses 👉 Availability of the Research and Development Credit 👉 Availability of Clean Electricity Investment and/or Production Credits 👉 Opportunities to delay operating expenses in the 2023 tax year to deduct them in 2024 and later years