CPAs Serving the Cannabis Industry

 

Gov. Phil Murphy's support of legalizing cannabis has prompted CPAs and other professionals to begin figuring out the ground rules of a potential multibillion-dollar industry. Join the NJCPA's new Cannabis Interest Group to gain information, insights and best practices as we wait for the legislative and regulatory process to play out in Trenton.

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Events

November 21, 2019
New Businesses – Advising Clients on Related Tax Issues and Accounting, Auditing and Tax Considerations for the Cannabis Industry
Mount Laurel

Unique Opportunity for Investors in the New Jersey Cannabis Industry

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.

Menendez Introduces Cannabis Banking Bill

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.

Special Tax Issues for Cannabis Businesses

Posted: April 10, 2019
It’s tax time for everyone, but for entrepreneurs in the rapidly growing cannabis business, it’s a particular challenge.

Agreement Reached on Legislation to Legalize Adult-Use Marijuana

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.

NJCPA Urges NJ Legislature to Make Tax Code Change if Cannabis is Legalized in New Jersey

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:

The Beginning of the End for IRC Section 280E — The FDA Reschedules (Some) CBD Drugs

by Raymond V. Owens, CPA, tax manager, Citrin Cooperman | Oct 11, 2018
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 Need to Analyze Their Own Risk Appetites Before Servicing the Cannabis Industry

by Raymond V. Owens, CPA, tax supervisor, WithumSmith+Brown | Jul 31, 2018
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).