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June 27 2019

Reduce Your Cannabis Taxes with 471 Allocations



The § 1.471-1 is a tax code that can be applied to reduce your tax burden – here's how. 

  • The § 1.471-1 tax code defines inventory capitalization rules for businesses.
  • If something counts as an inventory costs, it can be considered a COGS and deducted. 
  • Note that allocations under...
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Filed Under: Taxes, Finance

June 19 2019

Managing Your Cannabis Business Fund Flow



Learn how to budget and allocate your cash so that you don’t miss any important bills and can keep track of your money. 

  • When cash comes in, put some in a safe and some in a bank, depending on how you're paying your bills (electronically or cash).
  • Only keep as much cash on site as...
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Filed Under: Taxes, Finance

March 06 2019

Partnership Audit Rules for Cannabis Companies

Businesses that are structured as partnerships for federal income tax purposes have seen their audit activity increase – here's what you need to know.

  • The general rule under the new partnership audit rule is for partnerships to be taxed at the entity level.
  • Companies should factor in new...
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Filed Under: Compliance, Taxes

February 28 2019

3 Best Tax Software Tools for Cannabis Companies

The right tax software tool can help you organize your tax return, but double check all the information before you file.

  • We strongly recommend you speak to a CPA before you file your taxes, as the IRS is notorious for auditing cannabis operators. 
  • Xero, Quickbooks Online, and Freshbooks...
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Filed Under: Taxes

February 27 2019

199A - Qualified Business Income Deduction for Cannabis Operators

The QBI deduction is a complicated one that could help you save money on your cannabis business taxes.

  • Qualified business income refers to the ordinary, non-investment income your cannabis company generates
  • There a number of complexities that need to be taken into account when determining...
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Filed Under: Taxes

February 21 2019

The Big List of Things You May Not Deduct Under the 280E

This list offers some common business expenses that you many not write off on your cannabis business tax return.
  • IRC 280E prohibits any company operating in connection with a Schedule 1 or Schedule 2 drug from deducting certain business expenses.
  • The cost of goods sold (COGS) provision...
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Filed Under: Taxes

February 19 2019

How to Beat the Competition in Oklahoma’s Cannabis Market

Oklahoma legalized medical cannabis in June 2018, and since then, the market has exploded with dispensaries and grow operations.

By our count, the Oklahoma market has more than 1600 growers, 436 processors, and 947 dispensaries – a very competitive landscape for anyone wishing to enter the...

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Filed Under: Taxes, Business, Oklahoma

January 31 2019

Tax Preparation Checklist for Cannabis Operators

Follow this checklist to gather everything you need to fill out your  cannabis tax return.

  • You will need your tax returns for prior two years, plus copies of your sales, excise, and local tax returns. 
  • Make sure you have your income statements ready as well as your P&L and balance sheets. 
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Filed Under: Compliance, Taxes

January 24 2019

What to Expect in a Tax Audit

Tax audits are relatively common in the cannabis industry – here's how to prepare for one at your business. 

  • Make sure your sales, inventory, employee, and tax records are detailed and thorough. 
  • Be prepared with historical financial records, receipts, tax returns, and anything else you...
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Filed Under: Compliance, Taxes, Finance

October 08 2018

A Look at this Week in California's Local Cannabis Ordinance and Applications Scene

The important weekly cannabis updates for California are in. We have news from Commerce, Cathedral City, Imperial Beach, Woodlake and the National Cannabis Industry Association Conference.

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Filed Under: Taxes, Weekly Update