TaxProf Blog

Thursday, August 5, 2021

Crawford & Blattmachr: Estate Planning For Cannabis Business Owners

Bridget J. Crawford (Tempo; Google Scholar) & Jonathan G. Blattmachr (Peak Belief Firm), Estate Planning for Cannabis Business Owners: An Introduction, 41 ACTEC L.J. ___ (2022):

As extra states legalize hashish gross sales, property planners might more and more be known as upon to advise shoppers with pursuits in cannabis-related companies. This essay seeks help property planners in two methods. First, it goals to boost common consciousness of hashish enterprise house owners’ distinctive considerations. Second, the essay gives an summary of a number of the elementary points about which hashish enterprise house owners are prone to search property planning recommendation: enterprise formation issues, wealth transfers, the flexibility of trusts to personal cannabis-related companies, and reward, property, and earnings tax concerns.

In most states that allow authorized hashish gross sales, there’s restricted (or no) steerage to offer solutions to many fundamental questions on wealth transfers involving hashish companies. On the federal degree, whereas there’s a clear prohibition on earnings tax deductions by hashish companies, the reward and property tax guidelines are completely silent on probably the most fundamental issues. With this introductory info, forward-thinking property planners could also be higher geared up to advise shoppers about how a lot continues to be unknown concerning the authorized panorama for hashish enterprise house owners and to comply with future developments on this burgeoning space of legislation.

Scholarship, Tax, Tax Scholarship | Permalink

Source link