Proposition 215 Conversions: Read the law! The California Legislature anticipated this problem

Proposition 215 Conversions: Read the law! The California Legislature anticipated this problem

If you wish to re-publish this story please do so with following accreditation AUTHOR:  aBIZinaBOX Inc. CPAs – Jordan S. Zoot, CPA PUBLISHER:  CANNABIS LAW REPORT   A few days ago, we published a short note that described how a Cannabis Cooperative Association (“CCA”) could be utilized to circumvent the confiscatory nature of Internal Revenue Code (“IRC”) §280E[i]. Several our readers, including some purported experts, advised us that our suggestion would not work for them because the business organization with which they were involved pre-dated the enabling legislation for CCAs.   Read the law! The California Legislature anticipated this problem. The Legislature was aware many collectives and cooperatives were organized based on Proposition 215 long before a glimmer of hope for legalization even existed in fantasies regarding the future. Beginning even before Proposition 215 was passed, collectives and cooperatives were organized under various provisions of California law for the cultivation and underground distribution of marijuana. Many such groups formed a Nonprofit Mutual Benefit Corporation. Most did little else in the way of the creation of formalizing an organizational structure. There were, of course, some significant exceptions in which a group of individuals established formalized organizations.   Regardless of the extent to which an…

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Source : CANNANNEW REPORT
Link to original : Proposition 215 Conversions: Read the law! The California Legislature anticipated this problem
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