World of Cannabis & Marijuana Business Conference – November 15-18, 2016

World of Cannabis Conference
Las Vegas, NV
November 15-16, 2016

Marijuana Business Conference & Expomarijuana-business-conference-expo
Las Vegas, NV
November 16-18, 2016

Jim Tarbell, DAF’s President, and Director of Business Development Scott Jordan will be in Las Vegas, NV November 15-18 for two of the cannabis industry’s biggest events.

Starting November 15th, they will be at the World of Cannabis Conference at the Palms Hotel. Then, starting November 16th they can also be found at the Marijuana Business Conference & Expo at the Rio All-Suites Hotel just across the street. If you have an existing business that has been operational for over one year, or are seeking to buy or lease your real estate for a cultivation or retail marijuana business, these are must-attend conferences. They look forward to seeing you there!

Scott Jordan for Marijuana Investor News: Writing an Effective Executive Summary to Secure Cannabis Funding

scottjordannews-750xx1250-704-0-12Scott Jordan, Director of Business Development for Dynamic Alternative Finance, shares the 10 things that your marijuana business plan’s executive summary needs to include in order to secure funding for Marijuana Investor News. Read what lenders are looking for and how you can stand out from the crowd.

Read the full article by Scott Jordan here.1a845dd

Cannabis World Congress and Business Expo – June 15-17, 2016

Cannabis World Congress and Business Expocwcbe-logo-450x105
New York, NY
June 15-17, 2016

DAF’s Scott Jordan will be presenting “How to Borrow Money to Fund Your Marijuana Businesses Growth”
during the High Finance Seminar Track on Thursday,  June 16th at 4pm in Room 1A10 of the Javits Center.

Discover how to obtain private, non-bank debt based financing for working capital, equipment, or real estate loans. You will learn the top 10 sources for financing any marijuana business, the options available for financing, and how you can create wealth by owning your commercial real estate. If you have an existing business that has been operational for over one year, or are seeking to buy or lease your real estate for a cultivation or retail marijuana business, this is a must-attend seminar.

Thinking about attending? Be sure to use the promo code DYNAMIC for $100 off an exhibits-only registration. You can register here.

During his seminar you will also learn what to do and what not to do when seeking a loan, as well as hidden opportunities for investors in real estate and cultivation development deals.

Find out more about attending this seminar here.

Scott Jordan for Marijuana Investor News: 6 Mistakes Marijuana Businesses Make When Seeking Funding – Part 2

scottjordannews-750xx1250-704-0-12Scott Jordan, Director of Business Development for Dynamic Alternative Finance, explains the next three things marijuana business owners do wrong when seeking funding for Marijuana Investor News. Read what other common mistakes you should avoid, and be sure to read the first 3 recommendations here!

Read the full article by Scott Jordan here.1a845dd

Scott Jordan Contributes to Financing Options Article for Cannabis Business Times

cannabis business timesScott Jordan, Director of Business Development for Dynamic Alternative Finance, dives into the DAF process and how debt-based financing works as part of an article by Cannabis Business Times. Find out what you should expect from the funding-acquisition process, and why so many businesses are choosing to keep their equity.

Read “9 Options for Financing in a Non-Traditional Business Environment” here.

Scott Jordan for Marijuana Investor News: 6 Mistakes Marijuana Businesses Make When Seeking Funding – Part 1

scottjordannews-750xx1250-704-0-12Scott Jordan, Director of Business Development for Dynamic Alternative Finance, explains the first three things marijuana business owners do wrong when seeking funding for Marijuana Investor News. Read what common mistakes you should avoid, and check back next month to find out the other three!

Read the full article by Scott Jordan here.1a845dd

The PATH Act and Your Marijuana Business

At the end of 2015, the Protecting Americans from Tax Hikes Act (PATH) was signed into law, allowing marijuana-related business owners to once again take advantage of depreciation and energy tax benefits. The new package provides a set of incentives that could greatly reduce tax costs for qualifying businesses.

Section 179
The first benefit for cannabis businesses that made equipment, asset and building improvements in 2015 is the Section 179 deduction. These businesses can now expense a combined $500,000 for production equipment (new or used), off-the-shelf software, and up to $250,000 in leasehold improvements. This deduction phases out dollar-for-dollar for equipment and improvements costing more than $2 million, and carries the stipulation that these upgrades need to have been “in service” by December 31st of the tax year. The example below demonstrates how beneficial this deduction could be for tax savings.

Assuming upgrades were “in service” in 2016, the following cost savings could be applied to a purchase of $500,000 in equipment:

   $500,000 in equipment
–  $175,000 assuming a 35% tax rate
= $325,000 true equipment cost

Bonus Depreciation
The next development to come from the PATH Act is bonus depreciation. Bonus depreciation is the provision that allows businesses to expense off a portion of an asset in the year it is added. This has proven to be very helpful for businesses with large amounts of qualifying equipment, as they are able to save large amounts of tax in the year of purchase. A gradual phasedown has been implemented. The bonus depreciation plan through 2019 breaks down as follows:

  • As of January 1, 2015 through December 31, 2017: 50%
  • As of January 1, 2018 through December 31, 2018: 40%
  • As of January 1, 2019 through December 31, 2019: 30%

These rates mean that production equipment and improvement purchases with less than 20 year lives will be able to be expensed at 50% of the asset price in the year of purchase through 2017, 40% in 2018, and 30% in 2019. While this section does carry certain stipulations around qualified assets, it is a great opportunity for companies to invest in necessary equipment for a significant amount of savings.

Qualified Leasehold Improvements
Another significant piece of the PATH to help marijuana businesses saving on taxes comes via qualified leasehold improvements. Depreciation lives are reduced to 15 years, instead of the 39 year schedules normally applied. This means that after Section 179 and bonus depreciation deductions, a business will be able to accelerate remaining tax value of improvements over 15 years instead of 39 years. This rapidly reduces the timeframe in which a business can depreciate an asset and enjoy the tax benefits more quickly.

Energy Tax Incentives
The final benefit to cannabis business owners to come out of the PATH Act is the extension of the Energy Efficient Commercial Buildings deduction, or Section 179D. Now available through December 31, 2016, this is a deduction of up to $1.80/sf available to those investing in energy-efficient improvements that aim to reduce energy use within the building envelope (insulation, doors, windows, etc.), air conditioning and heating ventilation, and energy-efficient lighting. To qualify for the deduction, the building’s energy systems must be a specified percentage more efficient than the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) 2001 standards. It should be mentioned that these incentives are different than Energy Investment Tax Credits, which pertain to alternative energy sources like solar, geothermal, and wind.