Perspectives

insights into california's cannabis industry

Here is what you should do when facing an IRS Audit.
Taxation
Rogoway Law Group

I’m being audited by the IRS. What do I do?

Receiving a letter from the IRS, any letter, can be a fear inducing experience. But receiving a letter informing that you are under audit and requesting – nicely at first – that you produce all books and records for the year(s) under review can be particularly devastating. It’s possible that you contemplated an audit for items of tax that you

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3 Important Learnings from the 2019 California Cannabis Control Summit
New and Pending Legislation
Rogoway Law Group

3 Important Learnings from the 2019 California Cannabis Control Summit

The 2019 California Cannabis Control Summit, a gathering of municipal officials from across the state, focused on the various regulatory and enforcement challenges brought forth in the first year of California’s cannabis legalization through the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). This year’s summit, held in Sacramento, brought together a wide array of municipal officials – mayors

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Qualified Opportunity Zone (QOZ) Investing for Cannabis Businesses
Taxation
Rogoway Law Group

The Tax Code Giveth and The Tax Code Taketh Away: The Perils of Qualified Opportunity Zone (QOZ) Investing

The Tax Cuts and Jobs Act of 2017 (TCJA) added a community revitalization program to the tax code by providing incentives to taxpayers who invest capital gains in economically distressed areas. The program is designed to unlock billions of dollars in capital gains for investment in these areas, referred to as “Qualified Opportunity Zones.” Taxpayers who realize capital gains by

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Incorporating your cannabis business as a C Corp in light of the Tax Cuts and Jobs Act of 2017 (TCJA).
Corporate & Transactional
Rogoway Law Group

Double Taxation No More? Why C Corporations are Making a Comeback!

One of the perennial questions faced by taxpayers when forming a business is whether to incorporate it as a C Corporation or to form a flow-through entity such as an LLC, partnership, or S corporation. For most small business owners, the choice thus far has been a simple one: unless non-tax related considerations weighed heavily in favor of a C

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Tax Court Deals Another Blow to Cannabis Businesses
Taxation
Rogoway Law Group

Tax Court Deals Another Blow to Cannabis Businesses – Planning for §280E After the Alternative Healthcare Decision

Since the Tax Court’s decision in CHAMP v. Commissioner, cannabis businesses have rarely snagged a tax victory. The Tax Court’s decisions in Patients Mutual v. Commissioner and Alternative Healthcare Advocates v. Commissioner, issued in November and December 2018, respectively, adds to the pile of crushing losses for cannabis business owners. What is §280E and what how does it apply to cannabis

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Insurance coverage for cannabis businesses in California
Business
Rogoway Law Group

Selecting the Right Insurance for Your Cannabis Business

California cannabis licensees face a lot of risks, from business competition to regulatory uncertainty, to unforeseen disasters and lawsuits of all types. Cannabis companies can act to protect themselves from certain risk by obtaining specific types of insurance. State-Mandated Insurance Requirements for Cannabis Businesses While the state’s governing statute for commercial cannabis activity, MAUCRSA, does not require cannabis companies to

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Promising Advancements in Federal Cannabis Policy

While cannabis remains a Schedule I controlled substance under federal law, 4 recent events at the national level point to growing support to allow states to determine their own legal cannabis regimes without federal interference. 1) Congress Extends the Rohrbacher-Blumenauer Amendment in the Federal Omnibus Spending Bill In late March, Congress passed and President Trump signed a $1.3 trillion omnibus

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Lake County Adopts a Cannabis Cultivation Ordinance

On March 20, 2018 the Lake County Board of Supervisors adopted a commercial cannabis cultivation ordinance. The ordinance goes into effect on April 19, 2018. Please find a copy of the ordinance here. The County is currently accepting applications in a pre-application phase, and will administer permits for both adult use and medical use cultivation permits, for both indoor and outdoor cultivators.

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Important Environmental Requirements for California Cultivators

CalCannabis anticipates that it will start issuing state cannabis cultivation licenses — both temporary and annual — on January 1, 2018. Applications are not yet available, but will be soon. Before applying for a state cultivation license, there are two things you must do to ensure compliance with environmental regulations pertaining to water use and discharge: all cultivators — regardless

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October 31 Deadline Approaching! Apply for a Surface Water Right with the State Water Resources Control Board

Cannabis cultivators must identify their water source(s) as part of their CalCannabis application(s) to obtain a state license. The deadline to submit an application to the State Water Resources Control Board (“Water Board”) to obtain a surface water right for cannabis cultivation is October 31, 2017. This deadline was extended from the original July 1, 2017 deadline in the Medicinal and Adult-Use Cannabis Regulation

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