Paying Federal Income Tax – the Deductions Cannabis Businesses Can’t Take
The two definites in life are death and taxes – even for cannabis businesses. As you may well know, when it comes to taxes, cannabis businesses don’t have it easy. Enter tax code 280E. 26 U.S.C. §280E allows the Internal Revenue Service (“IRS”) to deny general business tax deductions – essentially prohibiting any “deduction or […]
Phase 2: Only a few days left!
Written by Elizabeth Kozlov On August 1, 2018, the Los Angeles Department of Cannabis Regulation (“DCR”) began accepting applications for Phase 2 priority processing for select cannabis businesses that were involved in non-retail cannabis activity prior to 2016. This is the second application window the DCR has opened for LA City-level licensing since state legalization. The […]
CBD – Is Corporate America Playing with Fire
Written by Taylor Ulrich, J.D. For many years, California has been the “cool kid” when it comes to cannabis regulation. In fact, California pioneered the legalization of cannabis for medical use in 1996. But until this year the state’s cannabis industry has been largely unregulated. At the start of this year, California joined the small […]
Cannabis Recalls: Cause for Panic or Just Good Corporate Citizenship
Last month, two California cannabis companies, Lowell Herb Co. and Bloom Brand, voluntarily recalled products, making retailers pull the affected products off the shelf. Are such recalls about to become common, or is this an isolated event? The Recalls The Bloom Brand recalled four products sold in early July for containing myclobutanil, aka Eagle 20 […]
Controversial Proposals in California’s Final Regs Countdown
They’re here. Proposed regulations from California’s three cannabis licensing authorities were released last month, kicking off the long-awaited regular rulemaking process. These proposed regulations will be here to stay for the foreseeable future once adopted by the state, giving the cannabis industry some much-needed respite from the regulatory whirlwind of the past year. Since the […]
Cannabis Businesses and the Stockmarket: Wall Street Buy Me Out!
Written by Abraham Finberg, CPA and Simon Menkes, CPA Great news! A publicly traded company from Canada through a reverse merger (whatever that means) wants to buy you out. All they need are your audited financials! Now what? Of course the only audits you ever had were sales tax audits. Weren’t they a blast! Your […]
Two Sides of the Same (BIT)coin
Written by Elizabeth Kozlov A few months ago, Daniel Boyd McMonegal of West Coast Organix was charged with money laundering after selling marijuana in illegal online markets. West Coast Organix was a cannabis business in San Luis Obispo County awarded a local land use permit for their business. At the time, the nonprofit medical cooperative […]
The Lynchpin Wears a Lab Coat: The Need for Cannabis Testing Labs
There is no one reason why many cannabis retailers saw their inventory plummet on July 1 – but one major factor is a lack of licensed testing labs. While business is good for cannabis retailers, the lack of supply is not just from customer demand – it is from a lack of licensed cannabis testing […]
Transitioned: Life in the Fully Regulated Market
It’s been a few weeks since we hit the ominous July 1 date that marked the end of California’s transition period to the regulated market. Cannabis businesses are now required to have all products pass certain testing standards before putting them on retail shelves. In addition, products must meet stricter packaging and labeling requirements. Many […]
New Cannabis Ordinances in Los Angeles: What Changes Can We Expect to See
Recently, the Los Angeles City Council adopted a handful of ordinances and made several recommendations to the City Attorney and other departments to strengthen current regulations. Here’s what you need to know: Adopted Ordinances Advertising (Off-site) Ordinance No. 185607 establishes a 700-foot distance buffer requirement for any off premises advertising for “Cannabis, Cannabis Products, or Cannabis […]