Perspectives

insights into california's cannabis industry

Here is what you should do when facing an IRS Audit.
Taxation
Sandeep Singh

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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Qualified Opportunity Zone (QOZ) Investing for Cannabis Businesses
Taxation
Sandeep Singh

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
Sandeep Singh

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
Sandeep Singh

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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