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Loughman Case Illustrates Potential Impact of Entity Choice on Income Tax Liability for Cannabusinesses

Recognition of Internal Revenue Code (“I.R.C.”) § 280E and its potential to limit deductions can have a material impact on the ongoing operation of a cannabusiness.  While operational concerns require attention, improper tax classification of an entity can result in unnecessary additional tax being owed.  In Loughman v. Commissioner, T.C. Memo 2018-85, the United States…

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Section 280E Remains a Problem for Maryland Cannabusinesses: How to Minimize Taxable Income through Proper Classification of Business Costs

The Maryland Medical Cannabis Commission (“the MMCC”) recently reported to the Maryland legislature on “the deleterious effects of the federal tax code on medical cannabis businesses.[1]”  As stated in its report, I.R.C. § 280E creates significant additional tax costs not faced by other industries and limits the industry’s ability to offer discounted supply to veterans…

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Recent Report from Maryland Medical Cannabis Commission on Compassionate Use Fund Highlights Disparate Tax Treatment of Cannabusinesses

In a December 2018 letter to Governor Hogan, the President of the Senate, and the Speaker of the House, the Maryland Medical Cannabis Commission (“MMCC”) discussed plans to fund the Compassionate Use Fund.[1]  As medical cannabis is categorized as a Schedule I drug and is not recognized for medical use by the federal government (more…

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Section 199A: How “Reasonable Compensation” Will Be Defined and How it May Impact the QBI Deduction

From its inception, Section 199A made it fairly clear that the deduction for qualified business income (“QBI”) would not apply to all income in respect of pass-through businesses.  Aside from limitations dependent on the nature of the industry (i.e., the “specified service trade or business” provisions of I.R.C. § 199A(d)(2)), the total wages paid to…

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Baltimore City Council Proposes Tax Increase to Fund Affordable Housing

The real estate marketplace at Zillow.com reports that the median home price in Baltimore is a shade more than $123,000. Baltimore home values have increased by almost 5% in 2017 and will likely continue to increase in 2018. Baltimore rents are increasing at a similar rate. Perhaps as an expression of their concern over the…

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How the New Tax Bill Will Affect Maryland

The recently-enacted Tax Cuts and Jobs Act will impact taxpayers throughout the United States, but it will have unique local effects that will vary across the country. The tax attorneys at Rosenberg Martin Greenberg in Baltimore have watched the progress of the bill, and are now studying how it will alter tax filings and payments…

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Deadline Expires for MD Tax Credit Applications for Homeowners, Renters

The September 1st deadline has arrived for homeowners and renters to file applications for Maryland tax credits based on property taxes they have paid. The Homeowner’s Property Tax Credit Program and the Renters’ Tax Credit Program alleviate some of the tax burden for lower income Maryland residents who meet program requirements. Tax relief for Maryland…

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Maryland Leads the Nation by Offering Energy Storage System Tax Credit

On May 4, 2017, Maryland became the first state in the nation to offer a tax credit to offset certain costs of installing an energy storage system. The idea behind the legislation is to encourage alternatives to the traditional electronic grid – if the utility providers are disrupted, third parties can take up the task…

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IRS Disbursement of Delayed Tax Refunds Gets Underway

Likely triggering a collective sigh of relief among millions of American taxpayers claiming the Earned Income Tax Credit or the Additional Child Tax Credit, the IRS has begun disbursing refunds that had been previously subject to a temporary hold. This comes as welcome news to many individuals who had filed their returns early only to…

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Rosenberg Martin Greenberg

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Phone: 410-727-6600
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Rosenberg Martin Greenberg

705 Melvin Avenue Annapolis, MD 21401
Phone: 410-727-6600
Map & Directions