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On June 13, 2022[1], California’s Senate and Assembly passed a massive, $300 billion budget, just two days before the deadline which would have forced lawmakers to forgo their pay. While Governor Gavin Newsom has until June 30 to sign or veto it, and some issues surrounding the spending the state’s $49 billion surplus still have […]
General Definition If you have ownership in an S corporation, it is important to have a general understanding of basis. This number called “basis” increases and decreases with the activity of the company. The IRS defines it as the amount of a shareholder’s investment in the business for tax purposes. When the S corporation files a […]
You can find our article, An Update on Missouri Legalization & Taxes, in the latest publication of Cannabis Industry Journal here: https://cannabisindustryjournal.com/news_article/an-update-on-missouri-legalization-taxes/ Reprinted with the permission of Cannabis Industry Journal ————————————————– Some states, like California, Colorado and Washington, have welcomed cannabis with open arms while others have taken a while to come […]
Statutory and Non-StatutoryThere are two types of stock options, statutory stock options and non-statutory stock options. Statutory stock options are options that are granted under either an employee stock purchase plan or an incentive stock option plan. Non-statutory stock options are options that are otherwise granted.Taxation of Statutory Stock OptionsGenerally, an employee is not taxed […]
The CDTFA has announced they will reduce cannabis excise taxes from the current rate of 80% down to 75%, effective July 1, 2022.[1] This rate impacts the markup between the wholesale cost and retail selling price of cannabis products. The 80% markup has stood unchanged since January 1, 2020.This rate change will affect the amount […]
Form 7203 is a new form developed by IRS to replace the Shareholder’s Stock and Debt Basis worksheet that has previously been generated as part of returns for S corporation shareholders in most tax software programs. While this worksheet was not a required form and was provided for the shareholder’s internal tracking purposes, starting with […]
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 therapeutic properties, and […]
Starting with the 2021 tax year, IRS forms K-2 and K-3 are new schedules that may need to be included with 1065 (Partnerships), 1120S (S Corporations), or 8865 (Certain Foreign Partnerships) filings. These are all pass-through entity filings that include Schedule K-1, which reports a partner’s or shareholder’s share of the entity’s profits, losses, deductions, […]
With the cost of home ownership on the rise, it is important for first-time homebuyers to be aware of certain possible benefits available to help with affordability. One of these is the Section 25 mortgage interest credit, which can be claimed on a taxpayer’s Federal tax return for a portion of the mortgage interest paid. […]
The state senator from Humboldt County, Senate Majority Leader Mike McGuire (D), has introduced a bill that would eliminate California’s cannabis cultivation tax.[1] The current tax rate is $10.08 per dry-weight ounce for flower and $3 per dry-weight ounce for leaves.[2]Senate Bill 1074 would discontinue, beginning on July 1, 2022, the imposition of the cultivation […]