Let's Talk About Section IRC §280E
IRC §280E
Unfairly, cannabis businesses are denied deductions or credits normally available to businesses since cannabis falls under the definition of a Schedule 1 substance. Until Congress removes marijuana from Schedule 1, IRC §280E tax limitations will continue to increase your tax bill drastically.
WE CAN HELP YOU REDUCE THE TAX EFFECTS OF IRC §280E BY:
-
Understanding Cost Accounting
-
Helping implement efficiencies within your business to reduce G&A expenses
-
Business Tax Structuring/Service Line Separation
-
Proactive Tax Planning
AUDIT CHALLENGES
For retailers, there are not many expenses that would be considered inventory or cost of goods sold and therefore many businesses have a separate and "legal" service/product to offset the IRC 280E limitation. With the separation of services, a quality set of audited financial statements can help substantiate the revenue per service reported to the IRS.
Our team will sit down with you and get a thorough understanding of the different revenue segments to verify that revenue recognition is being properly recorded.
TAX STRUCTURING
Your vision is your business, our team can help you minimize the frustrations and challenges with understanding the complicated tax code and how it directly affects you.
“I’m an LLC taxed as a C-Corporation. Is this the most advantageous tax structure?” and other various types of questions often plague our business owners. Does your current structure makes the most sense?
TAX PLANNING
The biggest question most business owners have is
"How much taxes will I owe?"
Tax Planning requires a proactive approach. You can't afford to wait until the last minute to find out how much tax you owe. Our team will sit down with you on a regular basis to look at how the business operations will affect the tax bill. Nobody likes a surprise from the IRS. In an industry that is subject to intensive scrutiny, get ahead of the curve.