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.  The Vapor Room Herbal Center is a medical marijuana dispensary in San Francisco owned by Martin Olive.  … Read More

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 … Read More

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 … Read More

Series of Medical Marijuana Bills Pass Legislature

On September 11, 2015, the California Legislature passed a series of bills creating a comprehensive regulatory framework for the Medical Marijuana Industry in California. Amended versions of Senate Bill 643, Assembly Bill 266, and Assembly Bill 243 passed and have been sent to the Governor’s Office for his signature. The series of bills creates a licensing framework for medical marijuana … Read More

Smartphone Kill Switch Law in Effect as of July 1

As of July 1, all new smartphones sold or shipped to consumers in California must include a “kill switch” device, pursuant to California Business and Professions Code section 22761. The new law, which was signed by Governor Jerry Brown in August of 2014, is aimed at deterring smart phone theft. Phones sold on or after July 1, 2015 must include a … Read More

U-be a Class of Employees

Recently, a federal court in California certified a class action of Uber drivers who claim they are really employees and were misclassified by Uber as independent contractors.  Uber defended the class status of the Uber drivers, arguing that each driver, as independent contractors, had a special contractual relationship with Uber and couldn’t prosecute their individual claims as a class.  Drivers for … Read More

Breaking the Logjam: CCP Section 998 Offers

Lawyers have their own peculiar jargon, often using just numbers to convey positions, settlement offers, and tactics.  One of the most commonly used numbers is found in Code of Civil Procedure (CCP) Section 998, technically an “Offer to Compromise” in a dollar certain amount that settles the litigation.   An “Offer to Compromise” pursuant to CCP Section 998 can be made … Read More

California Labor Commissioner Opines on Sick Leave

This month, the California Labor Commissioner has offered an opinion letter to help California employers interpret the requirements of the new Healthy Workplaces, Healthy Families Act of 2014—otherwise known as the new sick leave law in California.  The opinion letter provides guidance to employers who have employees who do not work a traditional 8-hour per day schedule.  Humboldt County employers … Read More

Elder Abuse Claims in Transactions

As our population ages, it is only natural there are more transactions where one of the parties is a senior citizen.  Parties to a transaction need to remember that the Elder Abuse Dependent Adult Civil Protection Act (EADACPA) applies to transactions with seniors.If it is believed that an elder has been taken advantage of in a transaction, it may lead … Read More