October 2015

Governor Signs Marijuana Regulation Bills

On October 9, 2015, Governor Jerry Brown signed a package of bills to regulate the medical marijuana industry in California:
  • AB 266 establishes the state medical marijuana bureau and gives it sole authority to issue, suspend or revoke licenses for the transportation, distribution and sale of the drug.
  • AB 243 requires marijuana farmers to obtain licenses through the state Department of Food and Agriculture, and gives the state the power to fine any grower that harms a river, stream or lake.

Tags: 

What to Do if Law Enforcement Has Contacted Your Child

Criminal investigations can be a harrowing and intimidating experience for adults suspected of having committed a crime, so it comes as no surprise that being the focus of a juvenile delinquency investigation can be scary to a minor and overwhelming to parents. Any minor brought before a court on a juvenile delinquency petition is entitled to a court-appointed attorney.

Tags: 

Ouch!! Federal Court Holds That Marijuana Dispensary May Not Deduct Business Expenses When Determining its Income for Income Tax Purposes

In Olive v. Commissioner of Internal Revenue 792 F. 3d 1146 (7/9/15), the Ninth Circuit recently upheld the decision of the U.S. Tax Court which precluded a marijuana dispensary from deducting any ordinary or necessary business expenses when determining its income for income tax purposes. 
 

Tags: 

420 Employees

The California legislature recently enacted the Medical Marijuana Regulation and Safety Act.  The Act consists of three separate bills which create a comprehensive state licensing system for the commercial cultivation, sale, transport, and distribution of medical marijuana.  Assuming the Act is signed into law by California’s Governor Jerry Brown, January 1, 2016 is its effective date.  Any person operating pursuant to the Act must abide by its many regulations—including those that apply to the employer-employee relationship.  
 

Tags: 

Is the Stepped-Up Basis at Death Going Away?

President Obama in his press release in advance of his annual State of the Union address in January of this year recommended elimination of the stepped-up basis at death. If this were to incur, it would impose a capital gains tax at death.  In order to avoid this alleged loophole, the President’s proposal was to treat bequests and gifts (other than to charitable organizations) as realization events. In other words, an event that would cause a recognition of gain.

Tags: