The Hive

Executive Profile: In the High Stakes World of Cannabis, Rachel Wright Is Crafting a New Financial Paradigm

LOS ANGELES- In the rapidly evolving cannabis industry, where regulatory landscapes shift as often as the tides and economic pressures loom large, one certified public accountant is making waves by redefining the role of financial leadership. Rachel Wright, a visionary CPA with an unyielding drive for efficiency and success, is charting a new course for ...

March 7th, 2024|

Obituary: Troy Datcher: CEO The Parent Company

LOS ANGELES- Troy Datcher, board chair of Gold Flora Corp. and a prominent Black leader in the cannabis industry, died Feb. 26 after a brief hospitalization. He was 55. Originally from Alabama, Datcher is mourned by his wife and his daughter, as well as his many family and friends. Troy Datcher, (main photo) was a ...

March 1st, 2024|

Limits on the Installment Method of Accounting For Gain

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 ...

February 29th, 2024|

IRS Penalty Abatement – How Does It Work?

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 ...

February 28th, 2024|

Requesting a Private Letter Ruling

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. ...

February 28th, 2024|

REVIEW: Green Dreams and Growing Pains: Benzinga’s L.A. Event Sheds Light on the Future of California’s Cannabis Industry

LOS ANGELES- At the Benzinga Market Spotlight event in the Bioscience LA venue, discussions unfolded that highlighted the diverse strategies and viewpoints within California's cannabis industry. One of the key speakers at Benzinga LA was Kyle Kazan, co-founder and CEO of Glass House Brands Inc., Kyle offered a comprehensive overview of the challenges and opportunities ...

February 26th, 2024|

Business Expenses – What is NOT Deductible?

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.  ...

February 26th, 2024|

Requesting a Private Letter Ruling

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 ...

February 12th, 2024|
  • United States Cannabinoids Market Analysis

Unexpected 280E Dangers in Farm Service Management Arrangements- Part II

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 ...

February 9th, 2024|

Business Expenses – What is NOT Deductible?

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 ...

February 8th, 2024|

Unexpected 280E Dangers in Farm Service Management Arrangements- Part I

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 ...

February 8th, 2024|

What the Heck Is a Wash Sale?

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 ...

February 7th, 2024|

What the Heck Is a Wash Sale?

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 ...

February 6th, 2024|

California R&D Tax Credit for the Cannabis Industry

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 ...

February 6th, 2024|

California Cannabis Trade Samples Exempt from Cannabis Taxes

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, ...

February 2nd, 2024|

California’s Cannabis Social Equity Benefits

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 ...

February 2nd, 2024|

Irs Uses 280e To Yank Depreciation Deductions From Cannabis Companies

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 ...

February 1st, 2024|

What Income Are You Required to Pay Tax On?

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 ...

February 1st, 2024|
  • Cannabis Products Market

Additional Tax Credit Available to Cannabis

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 ...

January 30th, 2024|
  • United States Cannabinoids Market Analysis

California’s High-Road Cannabis Tax Credits Comes with Challenges for Cannabis Business Owners

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 ...

January 30th, 2024|

Led Lighting Helps Brighten Cultivators’ Financial Statements

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 ...

January 29th, 2024|

Cannabis Companies Can Save Millions With One Tax Code Section

LOs ANGELES --At cannabis accountants, 420CPA, they like to highlight cutting-edge advisors we work with closely. Here’s a recent article from Bloomberg.com by Michelle Mabugat and Zackary Nolan of the L.A. law firm Greenberg Glusker. The piece examines the sale of Qualified Small Business Stock and how, if handled correctly, sellers can exclude $10 million of profit ...

January 29th, 2024|

M&A in Cannabis: A Guide for Buyers and Sellers

Mergers and acquisition activity in the cannabis space tripled from 2020 to 2021, and that pace is on track to continue in 2022. With big players entering the global cannabis market, we’re fielding more questions about mergers and acquisitions of cannabis businesses. In this guide, we look at the evolution of the U.S. cannabis industry and some ...

January 28th, 2024|

DankCan Dispensary: A Comprehensive Cannabis Retailer Turnaround in Michigan

Introduction: The Challenge The market began to mature, after the first few years of operations, and they were unprepared for what was to come. Market prices for retail cannabis dropped due to competition as many new retail dispensaries opened in their area. Their local jurisdiction issued more licenses than was originally planned in the regulations ...

January 28th, 2024|
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