Cannabis Business

March 17, 2021

Cannabis Taxpayers Find Flaws in New Accounting Method Rules

Reproduced with permission. Published March 04, 2021. Copyright R 2021 The Bureau of National Affairs, Inc. 800-372- 1033. For further use, please visit https://www.bloombergindustry.com/copyright-and-usage-guidelines-copyright/ —————————————————————————– Andrew Gradman of the Law Office of Andrew L. Gradman, and Abraham Finberg and Rachel Wright of AB FinWright LLP argue that new final regulations—stating that tax code Section 471(c) cannot […]

March 10, 2021

FORM 8300 (Cash payments received of over $10,000)

Abraham Finberg Bookkeeping, Cannabis Business, Tax

Summary In the cannabis industry, due to lack of banking, cash has truly been king. Compliance is critical when receiving large amounts of cash from customers as the penalties can be cost prohibitive to operating your business. We’ve offered a short guide here to filing form 8300 and other helpful resources. Background As part of the […]

February 12, 2021

How Auditors “Prove” You Didn’t Pay Your Taxes – Lack of Banking Presents Even More Obstacles in Cannabis Industry

Abraham Finberg Cannabis Business, Tax

Innocent until proven guilty… NOT. When it comes to paying taxes, auditors have an advantage: you have to prove you filed your taxes correctly; once you do, it’s their job to show your proof is wrong. You gave them your point of sale records, bank statements (if your company has them), and all your tax […]

November 10, 2020

Cannabis Rates to Remain the Same on January 1, 2021

Abraham Finberg Cannabis Business, News, Tax

Source: CA Department of Tax and Fee Administration Due to new legislation, Assembly Bill 1872 (Stats. 2020, ch. 93), the cannabis excise tax mark-up rate and the cultivation tax rates will not change on January 1, 2021. Cannabis Excise Tax Mark-up Rate The cannabis excise tax mark-up rate used by distributors to compute the average market price of […]

September 11, 2020

You Asked, We Answered: Cannabis- New LA Ordinance Live Q&A Session

Abraham Finberg Cannabis Business, News

Source: Manzuri Law

July 24, 2020

The Mechanics of the Cannabis Cultivation Tax in California

Abraham Finberg Cannabis Business, Tax

By Andrew Gradman Esq and AB FinWright Partners Abraham Finberg & Rachel Wright In addition to the sales and use tax, California cannabis businesses pay two unique taxes: The cannabis excise tax, and the cannabis cultivation tax. This article discusses the cultivation tax, described at RTC 34012 and 18 CCR 3700. The cultivation tax is […]

July 22, 2020

Accounting Methods in an Emerging Cannabis Loophole – Part 4

Abraham Finberg Cannabis Business, Tax, Webinars and Events

For cannabis businesses, federal income taxes can be ruinous—even in loss years. Unlike other industries, which pay income taxes only on actual income, cannabis businesses, defined in federal law as drug traffickers, are singled out for an extra tax on a portion of their expenses. As a result, even the best tax planning tends to […]

July 20, 2020