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ASC 842 lease accounting is a significant update that changes how organizations recognize and report leases under US Generally Accepted Accounting Principles (GAAP). This standard requires lessees to include right-of-use (ROU) assets and corresponding lease liabilities on their balance sheets, making leasing obligations more transparent. For cannabis dispensaries with multiple…

The Employee Retention Credit (ERC) emerged as a crucial lifeline during the COVID-19 pandemic. Enacted under the CARES Act, this refundable tax credit aimed to encourage businesses to keep employees on their payroll despite the economic turmoil caused by the pandemic. For many industries, the ERC offered essential financial support…

The cannabis retail sector is facing an increasing threat from POS data breaches. These breaches not only put sensitive customer and inventory information at risk, but also threaten the financial stability of businesses operating under complex regulatory frameworks. This is especially concerning for an industry already burdened by federal prohibition…

Real estate investors use 1031 exchanges—also known as like-kind exchanges—to defer capital gains taxes by reinvesting proceeds from the sale of one property into a similar property. This tax-deferral mechanism preserves capital and enhances portfolio growth by postponing tax liabilities, which is especially beneficial in high-value transactions. The cannabis industry…

Cost segregation studies for dispensary real estate represent a strategic approach to accelerating depreciation on buildouts despite the restrictive tax environment created by IRS Section 280E. Cannabis businesses face unique challenges when navigating federal tax regulations, particularly due to the limitations imposed by 280E, which disallows most business expense deductions…

The cannabis industry faces unique tax challenges, especially as the year comes to an end. This article provides a Year-End Tax Planning Checklist for Cannabis Operators (Before December 31) designed to protect profitability and ensure compliance with IRS regulations. By planning strategically during this crucial time, cannabis businesses can reduce…

Cannabis dispensaries operate in a uniquely cash-intensive environment due to ongoing banking restrictions and regulatory complexities. Handling substantial cash transactions is routine, yet it introduces critical compliance obligations under federal law. One such obligation is Form 8300, a key reporting tool that cannabis businesses must master to avoid legal pitfalls.…

The cannabis industry faces unique challenges in structuring equity compensation to attract and retain top talent. As multi-state operators expand rapidly, the need for effective incentive programs that do not rely heavily on immediate cash outlays becomes paramount. Equity compensation offers a strategic solution, aligning employee interests with long-term company…

Vertical integration accounting has become a crucial discipline in the cannabis industry, particularly for multi-state operators (MSOs) who handle cultivation, processing, and retail all in one place. This integrated business model requires careful management of internal costs and pricing strategies to accurately represent financial performance across different operational areas. Challenges…

The cannabis industry faces a complex tax landscape shaped significantly by IRC Section 280E, which limits standard business deductions for companies involved with controlled substances. This restriction imposes substantial challenges on cultivators and processors aiming to reduce their tax liabilities through conventional means. Yet, R&D tax credits emerge as a…