Cannabis Tax Is Complex

PK Solves Complex Problems

PriceKubecka is a CPA firm that tackles complex audit and tax problems facing the fast-growing cannabis industry.  We understand the struggles our cannabis clients face and provide them with a one-stop shop for all of their needs.  Contact us today to leverage our knowledge gained through 23 years of experience in public accounting.

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IRC §280E

 

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.

 

PriceKubecka 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

IRC §471

 

What costs should be included in inventory?  Section 471 prescribes what costs associated with the production of property for the taxpayer’s use or resale and with the acquisition of property for resale must be capitalized, i.e. included in the property’s basis or inventory costs.

 

Since cannabis currently sits as a Schedule 1 drug, this has the potential to have drastic effects to your bottom line and your tax liability. There are specific impacts to the various vertical components within cannabis.

 

  • Growers/Cultivators
  • Producers/Processors
  • Retailers/Dispensaries

State & Federal Income Tax Returns

 

At PK, our tax CPAs understand how this small code section needs to be combatted with GAAP accrual accounting in order to file your business return correctly and on time. If you operate out of more than one state, multi-state returns require an enormous attention to detail. Over our 23 years in business, PK has used technology and a proactive approach to facilitate the headaches and challenges that come with meeting all state and federal income tax returns deadlines to keep your business in compliance. In an industry subject to increasing complexity, let PK ease the burden of your compliance headachess.

Tax Structuring

 

“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?

 

PK will sit down with you and go over the tax structure of all your companies that make up your business in order to mitigate risks associated with the nature of the cannabis industry.  Your vision is your business, PriceKubecka can help you minimize the frustrations and challenges with understanding the complicated tax code and how it directly affects you.

Tax Planning

 

Everyone’s number one question is always “How much tax will I owe?”

 

You need a CPA with a proactive approach. Do not wait until the last minute to find out how much tax you owe. PK 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 with PriceKubecka.

State Tax Incentives

 

No two states operate the same. Each state has their own filing requirements and rules, as well as their own state tax incentives. Does your state offer tax incentives you are failing to take advantage of?

 

PriceKubecka can help you determine if your business qualifies for:

 

  • Research & Development Tax Credits
  • Cost Segregation Study
  • 199A Deduction

Contact PriceKubecka Today and let us help you grow your Cannabis business.

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pkcannabis@pricekubecka.com