Medical Marijuana Archives

26Aug

Growth Strategy for the Green Ocean

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Setting a new path for market entry into the cannabis industry Cannabis operators who want to shape the future of legal consumption in the United States want to create innovative new products, reach broad new customer sets, and promote positive uses for cannabis to meet the $80 billion market opportunity the industry is chasing. While cannabis […]

05Aug

Up in Smoke: Alpenglow Botanicals, LLC V. United States

Marijuana Insights

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Challenging IRS authority to deny “ordinary and necessary” business expense deductions By Tosin Hassan, CPA, CohnReznick In the words of Lauryn Hill, “It’s funny how money changes a situation, miscommunication leads to complication.” With the explosion of cannabis businesses across the country, many business owners are not profitable because of significant tax bills impacting cannabis […]

22Jul

Beware! Are you in compliance with your cash payments?

Marijuana Insights

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By Mary Amato, CPA, Partner, CohnReznick It is no secret that the Internal Revenue Service (IRS) is aggressively auditing cannabis businesses. The focus is on more than the limitations placed on the industry by IRC §280E. The IRS aggressively audits non-compliance of Reporting of Cash Payments. Form 8300, is not an income tax reporting form. […]

08Jul

The Patton Family, Green Meadows Farm, and a Commitment to Giving Back

Marijuana Insights

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Historic Massachusetts farm cultivates medical cannabis with a social conscience By Michael Harlow, CPA, Partner Beginning decades ago, George and Joanne Patton, son and daughter-in-law of the famed World War Two general, initiated traditions of community partnership and support that remain active today. Throughout their thirty-year operation of Green Meadows Farm, they sought to share […]

03Jun

Questions and Answers with an Original Licensee Holder

Marijuana Insights

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A discussion of growing pains, regulations, and current product investments By Michael Harlow, CPA, Partner CohnReznick Partner Michael Harlow: Brian, you were one of the first operational dispensaries in Colorado. What is the single largest difference between the early days and now? Brian Rogers: We started in 2009 with one of the first medical marijuana […]

28Apr

How Cannabis Industry Participants Would Benefit if 280E is Rolled Back

Marijuana Insights

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By Michael Harlow, CPA, Partner 280E is the Internal Revenue Code section that has been the focus of every tax discussion related to the cannabis industry for the past 15 years. It is the Code section that prohibits cannabis companies from deducting any ordinary and necessary business expenses from gross profit when calculating federal taxable […]

08Apr

Acquisition-Side Due Diligence in The Legal Cannabis Industry: Approach and Expectations for Both Sides

Marijuana Insights

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By Greg Chin, Kevin Michaelan and Jeffrey Michelson, Partner Continuing with the topic of industry trends from our last post, we explore the art of acquisition-side due diligence from full-scope financial and tax to limited-scope tax-only engagements. We’ll look at what to expect and how to approach it. Although commonly geared toward the investor/acquirer, i.e., […]

26Mar

Medical Cannabis, Texas-Style: Conditions and Requirements for Use

Marijuana Insights

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By Ashley Simpson, Hoban Law Group In 2015, the Texas legislature’s passage of the Texas Compassionate Use Act (Senate Bill 339) legalized medical cannabis in the Lone Star State, but only to the extent of “low-THC cannabis oil” for use by patients diagnosed with intractable epilepsy. Widening further access to any patients respectively diagnosed with […]

25Mar

Planning for the Coming Consolidation in the Cannabis Industry

Marijuana Insights

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By Michael Harlow, CPA, Partner In today’s Cannabis marketplace, we continue to hear one overarching theme. The industry buzz on everyone’s lips is about “the future consolidation of the industry. This is driven by several factors: strong customer and revenue growth for retailers, price compression for wholesalers, an expected change in the legal landscape, new […]

25Mar

The Impact of Regulations on Price

Marijuana Insights

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By Yona Torres, New Frontier Data Contributing Editor In the 16 months since California legalized marijuana, cannabis prices in some California market sectors have plummeted 75%, according to the Washington Post. This steep decline, paralleled in Colorado, Oregon and Washington, is a product of the number of newly-licensed cultivators and the regulations that guide them. […]