Banking, Taxes, and Marijuana

Banking, Taxes, and Deductions: Three Bills Push for Marijuana Parity

Marijuana-related businesses received critical support last week as more U.S. senators agreed to throw their support behind three essential bills.

Undeterred by the ominous smoke signals from the Trump administration, H.R. 2215 (Safe Act of 2017), H.R. 1823 (Marijuana Revenue and Regulations Act), and H.R. 1810 (Small Business Tax Equity Act of 2017) all received new cosponsors.

H.R. 2215 – Safe Act of 2017

A bill to allow marijuana businesses’ unfettered access to America’s financial institutions received three new cosponsors last week. Now with 35 cosponsors, H.R. 2215 seeks to reform federal banking rules and stop regulators from unjustly coercing U.S. banks from servicing the legal marijuana business sector. If passed, H.R. 2215 would “create protections for depository institutions that provide financial services to cannabis-related legitimate businesses, and for other purposes.”

H.R. 1823 – Marijuana Revenue and Regulations Act

Intended to “amend the Internal Revenue Code of 1986 to provide for the taxation and regulation of marijuana products,” H.R. 1823 has accumulated two new cosponsors since last Monday. Focusing on inventory, packaging, labeling, and record maintenance, passage of the bill would create a federal tax structure for the legal marijuana industry.

H.R. 1810 – Small Business Tax Equity Act of 2017

Allowing for reasonable deductions and credits in relation to expenditures connected with marijuana sales, H.R. 1810 seeks to modify the existing 280E tax penalty on marijuana businesses. Gaining two new cosponsors last week, this critical piece of legislation now has the support of 14 in total.

The tides of change: While the cannabis plant and its psychotropic cannabinoids are currently legal in 25-plus states for medicinal or recreational purposes, the feds still view the beneficial herb as an illegal narcotic and a highly dangerous substance. When Obama was POTUS, regulators provided financial institutions guidance on working with cannabis-related businesses – helping them remain compliant under federal law. Intimidated by the federal guidance, most financial institutions cut ties with the marijuana sector, complaining that conforming to the extensive requirements was too expensive and provided no assurance they would not be prosecuted at some point in the future.

Dangerously hypocritical, the current situation leads dispensaries to either deal in all cash transactions or lie about the true nature of their business to banks. Ultimately, this policy has led to public-safety issues and serious legal risks for the dispensary owners.

Reaching across the political aisle, the senators cosponsoring these three bills have attempted passing similar legislation before and have gained increasing support with each attempt.

Special thanks to: MONTEREY BUD of www.marijuana.com

About
“If you can't figure it out, figure out a "work-around!" The NestEggg Group was founded with a firm belief that working exclusively with professional firms to help them see past their history into the potential of their futures. Your potential is limited only by your creativity. Jeff's business purpose— “why”—centers on changing results through viewing things in new ways. He expounds: “Changing our results requires changing our actions. Because what we do proves what we believe, only when we change our beliefs can we progress. New insights are what cause us to shift our beliefs.” So what results do you want to attain? Call Jeffrey (1-888-987-NEST) when it’s time for progress. About Robert "Jeffrey" Wolter, President The NestEggg Group, Inc & EgggsAct Tax, Inc. & Managing Member NestEggg Investment Advisors Jeffrey is a common sense and productivity strategist. He facilitates and teaches about growth, positioning, and pricing strategies; leadership; operations; business communications and philanthropy. What he does best—differently from others—is energize people while he shows them how to solve business effectiveness. He clarifies the intricate, huts new light. He encourages hope. He sets you up to make development possible. Jeffrey is recognized for his original ideas and success with practical implementation, even as he challenges the "norm". Jeffery is a skilled facilitator. His deep knowledge of his firm(s) operations and ability to understand the intricacies of All of his clients, gives way to sharp observation skills allow his grasp a firm’s nuances quickly. He then guides firm owners and their teams on their unique paths toward improved profitability, smoother operations, stronger cultures and how and when to give back. Since 1998, he's helped more than 5,024 QuickBooks users and business owners achieve results such as: expanding revenues, attracting and inspiring talent, aligning operations with long-term objectives, discovering and leveraging their differentiation, substantially increasing sales and proposal results, strengthening relationships with their clients, and finding more joy in their work. His 25+ year career background includes roles as entrepreneur, finance director, board of director for several nonprofit, creative business development, insurances agency owner, Wealth Management Firm owner, editor, Tax Specialist, Accounting Director, Mediator and more. Before creating his firm in 2007, Jeffrey was an accountant for several well know local firms and individuals. After building a successful accounting practice, he became intrigued and inspired by the uniqueness of how Insurance, Investment's/Wealth Management, Taxes and Accounting/Bookkeeping all tend to work together, he branched out and created his list of Affiliate Companies in 2012 & 2013 In 2013, joined the Intuit Accountants Council and has assisted in the continued enhancement of the popular QuickBooks (Desktop and Online versions) and did so until late 2015. In 2014 with the legalization of Marijuana, Jeff and his team have committed themselves to knowing as much about the industry and being there to offer Cannabis Compliant, Accounting, Tax & Insurance to business owners that have or need help in keeping in with the Federal government's "280E"
Contact Us

Send us an email and we'll get back to you, asap.

Not readable? Change text.