Jordan S. Zoot - CPA

Jordan S. Zoot - CPA

Greed & Cannabis

Greed & Cannabis

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.”

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Proposition 215 Conversions: Read the law! The California Legislature anticipated this problem

Proposition 215 Conversions: Read the law! The California Legislature anticipated this problem

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.

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IRC Sec. 280E Insanity

IRC Sec. 280E Insanity

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.

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Boutique accounting firm that specializes in helping clients in the legal cannabis industry. We represent clients all over the United States, both plant-touching and ancillary....

 Accounting and Tax /  United States

aBIZinaBOX Inc

Popular Featured 

The Cannabis Practice Group ["CPG"] of aBIZinaBOX Inc. CPA's serves commercial cannabis industry businesses in California. The CPG have experienced > 250% growth over prior...

 Accounting and Tax /  California

We are an income tax and advisory cannabis focused niche firm. We are located in Portland, Oregon, however we can serve clients anywhere. As more...

 Accounting and Tax /  Oregon

Full Service Taxes, Accounting & Payroll for Cannabis Business. We specialize in Retail, Producer & Processor cannabis businesses.

 Accounting and Tax /  Washington

Latest News

Michigan Based Cannabis Legal Group Breaks Down Recreational Marijuana Taxes Since Legalization

9 & 10 news reports….The state of Michigan currently charges a six percent sales tax on recreational marijuana along with a ten percent excise tax. Barton Morris with Cannabis Legal Group gave us a closer look at how those taxes break down.“That money does go to the general fund, but it is earmarked for specific projects including schools, roads, but also some of that money is going to go back to the communities in which these facilities are created,” said Morris.

ITEP Article: Legal Cannabis and a Tax Cut, Too

On November 20, the House Judiciary Committee approved a bill that would legalize cannabis at the federal level and allow states to decide whether they will permit legal sales within their borders. From a tax perspective, the most attention-grabbing provision in the Marijuana Opportunity Reinvestment and Expungement (MORE) Act is a new 5 percent federal tax on sales of the drug. But this may not actually be the most consequential tax policy change in the bill.

Article – The Tax Advisor: Legal hemp and deductible expenses

Karla J. Brannen, CPA, Albin, Randall & Bennett, Portland, Maine write, “For decades, cannabis, derivatives of cannabis, and related substances such as hemp and marijuana were classified as Schedule I narcotics under the 1970 Controlled Substances Act. Federally, the production and sale of marijuana have been and remain illegal, although a marijuana business remains obligated to pay federal income tax on its taxable income under Sec. 61(a).”

Canada Article: Policy Options – “Provinces Need To Recognize First Nations Authority On Cannabis”

The most difficult regulatory aspect to deal with is the topic of taxation, primarily where non-First Nations people are buying cannabis products on-reserve without paying taxes back to the province. What has been learned from tobacco sales is that vendors on-reserve will not comply with provincial taxation rules and remit to the province. Provinces that intend to pursue the same approach with cannabis as they took with tobacco are not likely to get far into the conversation with First Nations.

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