Marijuana in the Workplace – It’s Not Called Work Marijuana – It’s Recreational

Marijuana in the Workplace – It’s Not Called Work Marijuana – It’s Recreational

Making Sure Recreational Marijuana Is Not Used at Work Some people have said that we should not legalize cannabis because it will make our society less productive. Employees will be toking up during their breaks and that will lead to all kinds of accidents and mishaps. My response is bull. Employers need to have a definitive approach to cannabis in the workplace, even if your business is cannabis. Number one it’s called recreational marijuana; it’s not called work marijuana. Secondly, alcohol is legal for adults 21 and over but it is not tolerated for employees to drink on the job so the same for cannabis. However, some breweries and distilleries  allow their workers to drink beer or spirits on the job and that is something the cannabis employer will decide for himself. All in all, if you have a construction site, machine shop, print shop or doctor’s office it would be best to leave the cannabis to the non-work environment. I remember talking with a 747 cargo plane pilot who said he regularly smoked marijuana and flew from the US to Europe. I asked him how he flew the plane stoned and he said he just flew slower. Personally at the time I thought this inappropriate. Operating heavy machinery and driving are two of the endeavors that require precision and quick thinking.  We don’t allow individuals to perform these tasks under the influence of alcohol so what about marijuana? Making sure recreational cannabis is not used at work is an event different from anything else, and you need to plan appropriately. You shouldn’t deal with it like something else you would have experienced...
FAQs About IRS Section 280E And The Ticket Business

FAQs About IRS Section 280E And The Ticket Business

26 U.S. Code § 280E – Frequently Asked Questions 1. What exactly is Section 280E? 2. MJ Consulting is an advertising and marketing firm. Why are you giving tax advice? 3. But isn’t marijuana legal in my state? 4. I still don’t understand why I can’t deduct normal business expenses? 5. So what does that mean to me? 6. Well how can I deduct expenses for a ticket business in the same place as my Marijuana business? 7 What are considered Cost of Goods Sold? 8. Why can’t I just put in a sandwich shop or some other kind of business why the ticket business? 9. What are you actually doing and what do I get? 10. How can you take deductions for this business if they are not real? 111. I heard that the IRS is disallowing the CHAMPS decision from 2007 and that we cannot get any deductions. 12. What if the Tax Court rules this is invalid? 13. How much is this going to cost me? 14. I mean you’re telling me there is no guarantee this is going to work out. Why would I pay for something as unsure of as this? 15. I just don’t have the time nor the employees to handle anything more like this. I’m way too busy now with my existing business and can’t do this? 16. I have a recreational store in Washington state can I do this here? 17. How much can I make at this business? 18. There is another dispensary/rec store a few miles down the road. What kind of guarantee do I have that they...
MMJ and Diabetes

MMJ and Diabetes

Medical Marijuana Shown as Effective for Diabetic Patients By now, it is known that the use of Medical Marijuana is quite effective when if comes to the treatment of chronic pains and aches. In the case of eating disorders, the use of Medical Marijuana has been quite fruitful. There have been different types of tests that have been done in recent months that prove the above-mentioned issues. However, very recently, scientists have come up with another revelation, that its use is miraculous in the management of diabetes. How Diabetes is Affecting the Population As it appears the number of people, suffering from diabetes is growing day by day. The recent reports by WHO confirms that within a decade almost one third of the world population will suffer from diabetes if it is not properly addressed. For those who have been suffering from diabetes for quite a long time, keeping the sugar level within limits has been a terrific hurdle. For them it is good news that the doctors and researchers have come up with the finding that marijuana restricts the sugar level to go too high by ensuring the flow of insulin as well as keeping the weight within the acceptable level, occasionally decreasing as well. What the Reports are Saying In different parts of US, quite a few studies have been done that have revealed the fact that marijuana affects the weight and helps individuals to loose weight. At the same time, the insulin resistance is also restricted with the help of marijuana. Although it is still not known whether the American Journal of Medicine will accept the finding or not, but the researches do...
Rationale of 280E Deductions

Rationale of 280E Deductions

There is currently some hope for cannabis businesses in two respects. First, IRS Code Section 280E is limited to the sale of (or “trafficking in”) marijuana. Thus, if a taxpayer is involved in selling medical marijuana and also in another business, such as caregiving to sick patients, the taxpayer could possibly be in a position to write off business expenses in association with the caregiving function or another business related to marijuana.     For example, in Californians Helping to Alleviate Medical Problems (CHAMP), the Tax Court held IRS Code Section 280E would not preclude the taxpayer from deducting expenses as a result of a trade or business apart from that of illegal trafficking in controlled substances, basically because the taxpayer is also engaged in trafficking a controlled substance. Of course, practically speaking, the taxpayer’s characterization of a deduction will not be rubber-stamped by the IRS if it appears to be artificial and cannot be reasonably reinforced by the facts and circumstances of the individual case. Second, while IRC § 280E disallows any kind of business deduction for a marijuana seller’s ordinary and necessary business expenses, costs of goods sold – that may be, the carrying value of goods sold within a particular period – are excluded using this rule. Senate Report 97-494(I) explained the reasoning for this as follows: “All deductions and credits for amounts paid or incurred in the illegal trafficking in drugs listed in the Controlled Substances Act are disallowed. To preclude possible challenges on constitutional grounds, the adjustment to gross receipts with respect to effective cost of goods sold is not affected by this provision of...
Finding Real Estate for a Dispensary

Finding Real Estate for a Dispensary

By Kerry Blasdel Note: This is the second in a two-part column on real estate issues for existing MMJ businesses. The hunt for MMJ dispensary and recreational retail real estate can be difficult, complex, and time consuming. It is more burdensome to find and pre-qualify property in the MMJ industry than in almost any other commercial industry, due to many restrictions imposed by both local and state governments. Often, MMJ business owners state that “it took forever to find a building.” Business owners start out their search being picky about a location, but soon find out there is no way to be picky and must accept the locations that are offered. Be prepared for this possibility. 1. Pre-Qualifying a Location After you have chosen a geographic area, be aware that both the state and local jurisdiction have current laws in effect which allow your business. This all comes down to one word: Zoning! Go to the local Planning Department and understand the local land use laws (aka zoning) . Usually you will find only a few zones in which your business would be allowed. See where they exist on the zoning map, and narrow your search to these areas only. No other areas are even worth looking at. Next, if the jurisdiction requires this, you must identify nearby ‘sensitive use locations’ and be certain distances away from them. These may include schools, churches, recovery or addiction centers, other dispensaries, public parks, etc. These sensitive use parameters often knock out good locations, so be prepared. 2. Pre- Qualifying a Property Within the designated zones, find available properties and property types....
Internal Revenue Code Section 280E

Internal Revenue Code Section 280E

Recently, the provisions of Internal Revenue Code section 280E are being applied by the Internal Revenue Service (IRS) to businesses operating in the medical marijuana industry. Section 280E provides: No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted. Even though 23 states and Washington DC have medical marijuana laws (and two of those states now allow marijuana to be consumed without a doctor recommendation) along with 4 states with legal recreational cannabis consumption, the IRS is applying section 280E to deny business deductions. Businesses operating legally under state law argue that section 280E should not be applied because Congress did not intend the law to apply to businesses that are legal under state law. The IRS asserts that it was the intent of Congress to apply the provision to anyone “trafficking” in a controlled substance, as defined under federal law (as stated in the text of the statute). Thus, section 280E is at the center of the conflict between federal and state laws with respect to medical marijuana. Such is so even when the marijuana is medical marijuana recommended by a physician as appropriate to benefit the health of the user, as explained by the United States Tax Court in Californians...