Posted: May 15, 2019
By forming a qualified opportunity fund (QOF) and investing in real estate, which may be leased to an operating cannabis company depending on the jurisdiction, investors may be able to participate in the growth of the cannabis industry. Find out how.
Posted: April 12, 2019
U.S. Sen. Bob Menendez introduced the Secure and Fair Enforcement Banking Act to enable legal cannabis businesses to access banking services. Currently, legal cannabis businesses can be denied access to the banking system because banks can be prosecuted under federal law.
Posted: April 10, 2019
It’s tax time for everyone, but for entrepreneurs in the rapidly growing cannabis business, it’s a particular challenge.
Posted: March 12, 2019
Governor Murphy and New Jersey legislative leaders have announced an agreement on the broad outlines of legislation to legalize adult-use marijuana in New Jersey, including the tax rate, regulatory structure and expungement provisions.
Posted: February 13, 2019
If adult-use cannabis is legalized in New Jersey, it is crucial that the state decouples from the federal law governing cannabis — Internal Revenue Code 280(E) — to have a viable cannabis industry.
From the NJCPA Focus blog:
Accountants would be wise to keep their eyes on IRC Section 280E. If this is the beginning of a trend for the Drug Enforcement Agency, perhaps all businesses operating within the medical cannabis space may soon be able to claim exemption from IRC §280E.
Tax practitioners will have to examine their appetite for risk before serving clients in the cannabis industry. Education on Internal Revenue Codes will allow tax practitioners to best protect themselves from scrutiny as will understanding the calculation of cost of goods sold (COGs).