The Hive

LOS ANGELES – Paylient HR Solutions, a Professional Employer Organization (PEO) tailored for the cannabis industry, proudly announces the appointment of Daniela Williams as their Chief Growth Officer (CGO). This strategic move signifies Paylient's commitment to its expanding footprint in the burgeoning cannabis sector. Chief Risk Officer, Jack Straughan, expressed his excitement about the new ...

By Rachel Wright, Simon Menkes, & Abraham Finberg- CPAs licensed in California of AB FinWright LLP & 420CPA, and Andrew Gradman, Esq of Andrew Gradman Tax This is Part II of II of our series entitled “Unexpected 280E Dangers in Farm Service Management Arrangements.” This series is intended to educated cannabis business owners, professionals, and ...

It is never fun to receive a letter from IRS, especially one that says you are being assessed penalties due to filing late, paying your taxes late, or understating income on your tax return!  In many cases taxpayers are fearful of additional consequences so they just pay what is owed, but it is important to ...

You may someday find yourself in a unique tax situation and want to remove any uncertainty of the tax treatment of that situation.  In that case, you can request a Private Letter Ruling (PLR) from the Internal Revenue Service. A PLR is a written statement that interprets and applies tax law to your particular facts. ...

By Rachel Wright, Simon Menkes, & Abraham Finberg- CPAs licensed in California of AB FinWright LLP & 420CPA, and Andrew Gradman, Esq of Andrew Gradman Tax While it seems like a straightforward question, there can sometimes be confusion about what expenses can be deducted from your business for tax purposes and what expenses cannot be.  ...

By Rachel Wright, Simon Menkes, & Abraham Finberg- CPAs licensed in California of AB FinWright LLP & 420CPA, and Andrew Gradman, Esq of Andrew Gradman Tax You may someday find yourself in a unique tax situation and want to remove any uncertainty of the tax treatment of that situation.  In that case, you can request ...

By Rachel Wright, Simon Menkes, & Abraham Finberg- CPAs licensed in California of AB FinWright LLP & 420CPA, and Andrew Gradman, Esq of Andrew Gradman Tax This is Part II of II of our series entitled “Unexpected 280E Dangers in Farm Service Management Arrangements.” This series is intended to educated cannabis business owners, professionals, and ...

While it seems like a straightforward question, there can sometimes be confusion about what expenses can be deducted from your business for tax purposes and what expenses cannot be.  Deductions are critical in helping to lower your tax bill, but knowing what expenses you can deduct is critical to keeping you out of trouble in ...

By Rachel Wright, Simon Menkes, & Abraham Finberg- CPAs licensed in California of AB FinWright LLP & 420CPA, and Andrew Gradman, Esq of Andrew Gradman Tax This is Part I of II of our series entitled “Unexpected 280E Dangers in Farm Service Management Arrangements.” This series is intended to educated cannabis business owners, professionals, and ...

Have you ever wondered why gains are separated between long-term and short-term when you receive your 1099 at tax time? There is a very good reason for that, and one you might want to consider more carefully when investing. Short-term capital gains are derived if you hold an investment one year or less before disposing ...

Investing has become much more accessible since Robinhood became a thing.  But do you know what a wash sale is and how it will impact your tax return? You have a stock, it dips, and you sell it thinking “Hey, I can use this loss on my tax return AND buy XYZ back at a ...

LOS ANGELES- Investing has become much more accessible since Robinhood became a thing.  But do you know what a wash sale is and how it will impact your tax return? You have a stock, it dips, and you sell it thinking “Hey, I can use this loss on my tax return AND buy XYZ back ...

LOS ANGELES- The cannabis industry in the U.S. is growing rapidly. As of February 2022, 37 states allow the medical use of cannabis products, and 18 have enacted measures to regulate cannabis for non-medical use. The growing positive perception of cannabis stems, in part, from significant research aimed at producing better quality plants, uncovering new ...

LOS ANGELES- The enactment of Assembly Bill 141 on July 12, 2021 radically altered the taxability of cannabis trade samples. Effective September 29, 2021, excise tax no longer applied to cannabis flower or cannabis products provided to other licensees as trade samples. But not all licensees can give out trade samples: only cultivators, manufacturers, distributors, ...

Vendor Compensation, Equity Fee Waivers, and More Massive social equity efforts are being made on the East Coast on behalf of cannabis businesses (see our articles in Bloomberg and elsewhere about New York and the Tri-State area:[1]) Now California has beefed up its offerings with vendor compensation being paid to equity-approved businesses. In addition, state ...

In light of the upcoming income tax filing season for 2022, we felt it was noteworthy to remind cannabis taxpayers that Section 179 depreciation is unavailable in the industry due to the 2022 tax court case discussed below. Read through for some other possible but aggressive options. In a March 2022 tax court decision, a ...

In general, income can be received in three ways – money, services, and property – and IRS requires you to declare most of this income on your tax return. Income is taxable unless specifically exempted by law, and in some cases, even nontaxable income must be disclosed on your tax return. Taxable Income Typically, the ...

LOS ANGELES- One of the goals of California Assembly Bill 195, signed into law by Governor Gavin Newsom on June 30, 2022, was to bring tax relief to the cannabis industry, a class of businesses notoriously challenged by heavy taxes. To this end, the Franchise Tax Board is currently offering two tax credits. In addition ...

The High-Road Cannabis Tax Credit offers businesses potential tax savings of $250,000 per year. However, cannabis entrepreneurs are finding the necessary qualifications difficult to meet. Issues surrounding the size of the business, the wages that qualify, and the benefits the business must provide its employees all create a barrier to entry that has many owners ...

Tightening down a business’s expenses and reducing its tax burden is a lot like the correct captaining of a sailboat. Once you’ve got your boat pointed in the direction you want it to go, you must tighten down the sails so that maximum forward momentum is achieved. One way a cannabis grower can reduce their ...