The Hazy State of Marijuana Taxation

State-legal marijuana businesses operate in a twilight zone: Legal for state purposes, but illegal for federal. In this gray zone, many tax traps hide, waiting for the unwary. This article will help make you a little more wary. Let’s begin by looking at marijuana businesses from the perspective of the federal income tax system. The…

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Saving the Family Farm: The Sum of the Parts Always Equal the Whole?

The U.S. Department of the Treasury this summer fired “a warning shot across the bow” of family farmers who want to keep their farm in the family. Here’s how. Transitioning the Family Farm Farmer Dan owns a very profitable walnut farm outside Merced, California. Dan wants to pass ownership of the farm at his death…

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Challenge IRS Fee Waiver Rules

In July 2015, the U.S. Department of the Treasury issued proposed regulations (REG-115452-14) pursuant to IRC 707(a)(2) addressing the tax treatment of certain private equity management fee waivers. Under the proposed regulations, the conversion of a management fee to a capital contribution without any “significant entrepreneurial risk” may be a “disguised payments for services.” Such…

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Donald Trump’s Billion Dollar Loss: Good Tax Planning, or Dubious Trick?

Donald Trump’s tax returns have led to intense interest in and speculation concerning his tax positions. Recently, the New York Times[1] reported that he had nearly a billion dollars of net operating loss on his 1995 tax returns, available for carryover for many years. Tax commentators have speculated about the loss and the corresponding “cancellation…

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