taxes

Last month, the California Department of Tax and Fee Administration announced an increase in the cannabis excise tax. Starting January 1, 2020, the new markup rate will be 80%, an increase from the original markup of 60%.  

The Bureau of Labor Statistics reported this year that about 20% of small businesses fail in their first year. In the cannabis industry, operators face more obstacles than other new businesses. High licensing fees, taxes, and lack of access to traditional banking create high barriers...

Opportunity zones are some of the best investments available for anyone with the funds seeking to lower their tax responsibility. Praised by some as a “more socially conscious form of real estate investing,” opportunity zones offer a way to do good while saving money on your taxes....

Recently, our experts have heard reports of cannabis operators being penalized for failing to submit IRS Tax Form 8300. 

As operators gain more experience working in the cannabis industry, some trends are becoming clear. The market is very relationship-based; it’s hard to get a foothold in this competitive space if you don’t partner with another cannabis operator, either directly or indirectly. 

Due to federal regulations restricting cannabis operators’ access to traditional banking, many cannabis companies are forced to pay their operational costs in cash.

Mergers and acquisitions are becoming more and more popular in the cannabis industry. According to data from Marijuana Business Daily, “233 M&A transactions have been completed so far in 2019 versus 185 for a similar period last year.” M&A deals involving public buyers are an...

As a cannabis operator, you’re probably sick of having to contend with the many, frequent taxes due to the state and local government. Cannabis distributors, cultivators, and manufacturers are all responsible for different taxes, in addition to federal taxes required of all business...

There are many different types of taxes in the cannabis industry. Cannabis distributors play a big role in the collection and remittance of cannabis sales taxes, excise taxes, cultivation taxes, and distributor taxes. These responsibilities are on top of the licensing fees and...

As cannabis operators know, the federal 280E regulation places a huge tax burden on legal adult-use cannabis businesses. Under the 280E, any business connected with a Schedule 1 drug (as regulated under the Controlled Substance Act) cannot claim normal business tax deductions.