CPAs Serving the Cannabis Industry

 

Gov. Phil Murphy's support of legalizing cannabis has prompted CPAs and other professionals to begin figuring out the ground rules of a potential multibillion-dollar industry. Join the NJCPA's new Cannabis Interest Group to gain information, insights and best practices as we wait for the legislative and regulatory process to play out in Trenton.

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Tax Court Dissent Concludes Section 280E Is Unconstitutional

Posted: October 24, 2019
Section 280E of the Internal Revenue Code has long been a thorn in the side of the cannabis industry. However, in a United States Tax Court opinion issued October 23, 2019, one judge’s partial dissent suggests that the firm ground undergirding Section 280E may be starting to weaken.

8 Fast-Growing Service Areas for CPAs

Posted: August 1, 2019
Savvy CPA firms are taking advantage of opportunities to expand their services and quickly deliver more value. International reporting, cannabis guidance, environmental management, and sports and entertainment taxation are among the areas CPAs are enjoying early success in.

Unique Opportunity for Investors in the New Jersey Cannabis Industry

Posted: May 15, 2019
By forming a qualified opportunity fund (QOF) and investing in real estate, which may be leased to an operating cannabis company depending on the jurisdiction, investors may be able to participate in the growth of the cannabis industry. Find out how.

NJCPA Urges NJ Legislature to Make Tax Code Change if Cannabis is Legalized in New Jersey

Posted: February 13, 2019
If adult-use cannabis is legalized in New Jersey, it is crucial that the state decouples from the federal law governing cannabis — Internal Revenue Code 280(E) — to have a viable cannabis industry.

Nearly 50 Percent of New Jersey CPAs Say Legalizing Adult-Use Marijuana Would Help the Economy

Posted: January 23, 2019
In a survey conducted earlier this month, 48 percent of the 1,063 NJCPA members who responded said legalizing adult-use marijuana in New Jersey would help the economy, compared to 22 percent who said it would have no impact and 20 percent who said it would hurt the economy.

From the NJCPA Focus blog:

The Beginning of the End for IRC Section 280E — The FDA Reschedules (Some) CBD Drugs

by Raymond V. Owens, CPA, tax manager, Citrin Cooperman | Oct 11, 2018
Accountants would be wise to keep their eyes on IRC Section 280E. If this is the beginning of a trend for the Drug Enforcement Agency, perhaps all businesses operating within the medical cannabis space may soon be able to claim exemption from IRC §280E.

Tax Practitioners Need to Analyze Their Own Risk Appetites Before Servicing the Cannabis Industry

by Raymond V. Owens, CPA, tax supervisor, WithumSmith+Brown | Jul 31, 2018
Tax practitioners will have to examine their appetite for risk before serving clients in the cannabis industry. Education on Internal Revenue Codes will allow tax practitioners to best protect themselves from scrutiny as will understanding the calculation of cost of goods sold (COGs).