Taxation of Cannabis: Overcoming Tax Challenges in Cannabis Business Operations, Key Planning Techniques

Entity Selection, Gross Income Inclusion, Impact of Tax Reform, Effect of Section 280E, IRS Audits, Tax Issues in Raising Capital

A live 90-minute premium CLE/CPE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
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Tuesday, January 17, 2023

1:00pm-2:30pm EST, 10:00am-11:30am PST

Early Registration Discount Deadline, Friday, December 23, 2022

or call 1-800-926-7926

This CLE/CPE course will provide tax counsel and advisers guidance on tax and related issues for businesses engaged in the cannabis industry. The panel will discuss critical federal and select state tax rules impacting cannabis businesses, recent tax court decisions, Section 280E, forfeiture, and banking.

Description

The sale and distribution of cannabis for recreational or medical use has become a powerful economic engine generating billions in annual revenue with 33 states and the District of Columbia having some form of legalization of the substance. Despite state relaxation of marijuana prohibition laws, without careful planning, the taxation of regulated cannabis businesses can result in hefty tax assessments and penalties.

Cannabis businesses are accounting for and reporting the results of their operations with gross receipts, cost of goods sold (COGS), and other deductions just like other for-profit businesses. However, as long as marijuana remains a Schedule 1 controlled substance under federal law, these businesses must navigate the pitfalls of complex federal and state tax rules.

Under Section 61, all gross income must be reported from whatever source it is derived. However, under Section 280E, cannabis businesses cannot deduct rent, wages, and other expenses unless it is for COGS, resulting in a substantially higher tax rate than other companies on their income. This dilemma has been the subject of recent tax court cases and appeals.

Listen as our panel discusses federal and select tax rules impacting the cannabis industry, recent tax court cases, Section 280E, forfeiture, banking, and other related issues.

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Outline

  1. Impact of recent tax court cases on cannabis business tax planning
  2. Tax issues in operating a cannabis business

Benefits

The panel will review these and other key issues:

  • Recent court decisions impacting the taxation of cannabis businesses
  • Application of tax rules to the cannabis industry and key planning techniques
  • Structuring the ownership of cannabis businesses to minimize tax
  • Key issues raised in IRS audits and methods to avoid them
  • Effect of Section 280E and deduction of the cost of goods sold

Faculty

Kalinski, Jonathan
Jonathan Kalinski

Principal
Hochman Salkin Toscher Perez

Mr. Kalinski specializes in both civil and criminal tax controversies as well as sensitive tax matters including...  |  Read More

Toscher, Steven
Steven (Steve) Toscher

Managing Principal
Hochman Salkin Toscher Perez

Mr. Toscher has been representing clients for more than 35 years before the Internal Revenue Service, the Tax Divisions...  |  Read More

Brown, Sandra
Sandra R. Brown

Principal
Hochman Salkin Toscher Perez

Ms. Brown’s practice focuses on individuals and organizations who are involved in criminal tax investigations,...  |  Read More

Attend on January 17

Early Discount (through 12/23/22)

See NASBA details.

Cannot Attend January 17?

Early Discount (through 12/23/22)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. CPE credit is not available on recordings. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

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