Marijuana's Tax Paradox (or the Uncanny Cannabis Controversy) (Completed)

Date: Tuesday, November 10, 2020
Instructor: Eva Rosenberg
Begin Time:  12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

The Untouchables never caught Al Capone – the IRS did. One of Al Capone’s big crimes was bootlegging – and not paying the tax on his illegal income. As you’ve guessed, illegal income is taxable. And yes, the income from marijuana sales is still illegal on the federal level. But on the state level, it’s perfectly legal. So, how do we prepare tax returns with this tax dichotomy?

Who Should Attend
Practitioners at all levels regardless of practice concentration, whose clients are venturing into the growing, selling, distribution of medical marijuana.

Topics Covered

  • Explore licensing of operations
  • Outlining the types of marijuana-related businesses
  • Situations where the entire business reporting is the same for IRS and state
  • Reporting for state-only purposes
  • Deductions that are legal for the IRS (Sec 280E issues)
  • What to do with deductions the IRS won't allow (if anything)
  • Controls for cash-based businesses
  • Individuals — health care deductions — possible?
  • Individuals — growing pot for personal use

Learning Objectives

  • Identify the reporting rules for state purposes
  • Recognize the IRS filing rules without turning our clients into federal tax criminals

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

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