Jordan S. Zoot - CPA
Our interest in California’s cannabis industry extends far beyond taxes. We have a substantial personal and historical perspective relating to cannabis in California. Members of our staff have been involved in California’s cannabis industry since Haight-Ashbury was the place to be in the mid-1960s. Members of our team have witnessed both the damage and the benefit of cannabis. Members of our staff have observed first-hand the injuries the federal government has caused through misguided, oppressive, and racist policies relating to cannabis. “Cannabis is a dangerous drug. Greed is also a dangerous drug. The combination of these two drugs is the principal reason for the chaos in California ‘s cannabis industry. Of these two drugs, greed is the more dangerous.”
A few days ago, we published a short note that described how a Cannabis Cooperative Association (“CCA”) could be utilized to circumvent the confiscatory nature of Internal Revenue Code (“IRC”) §280E[i]. Several our readers, including some purported experts, advised us that our suggestion would not work for them because the business organization with which they were involved pre-dated the enabling legislation for CCAs…………..Read the law! The California Legislature anticipated this problem.
Corporate Transparency Update. The focus of this column has been on the legal cannabis industry in California. However, many of our clients and regular readers are aware that our practice also focuses on……
The recent Tax Court decision in Northern California Small Business Assistants Inc. v. Commissioner [“Nor Cal”] made what is perhaps the most damning statements yet regarding the application of IRC Sec. 280E to cannabis dispensaries. The Court stated……
An Elegant Solution – we are writing this article for the cannabis cultivators of the Emerald Triangle as well as all of the cannabis growers in smaller and less well-recognized enclaves of cannabis cultivation throughout California. This Article Is For You!
The two Harborside cases created an opportunity for analysis and a solid foundation for tax planning going forward for the cannabis industry. Such planning is what tax professionals should be engaged with on a daily basis.