Whether you're just starting out or are already a seasoned cannabis grower, dealing with the complex regulations concerning cannabis cultivation can lead to a major headache. The 280E Form is a tax nightmare that has created unnecessary and costly consequences for any business directly involved in the cultivation or sale of cannabis.
Fortunately, cannabis growers can limit their tax liabilities with Cost Of Goods Sold (COGS) deductions, and California Cannabis CPA is here to help you understand what that means for your company. We're confident that we can help you to limit any unnecessary tax exposure.
You have questions, and we have answers! In our experience working with growers, here are some of the most frequently asked questions.
What deductions are available to my business?
Raw materials and supplies and direct labor costs are some of the items that are permitted as Cost Of Goods Sold (COGS) deductions. The IRS allows cannabis growers to claim some additional COGS deductions if they prepare financial reports in compliance with GAAP. Read more here
What are the licensing requirements for California growers?
In California, growers are regulated by the Medical Marijuana Regulation and Safety Act (MMRSA), which requires specific licenses depending on the type and size of your cannabis growing operation. Read more here
How do I obtain banking for my business?
Cannabis producers may have a tough time finding financial institutions that are willing to do business with them. However, it isn’t impossible! We're here to support you in finding the right bank for your needs. Read more here
How do I lower my chances of an IRS audit?
While there is no way to guarantee that you won’t be audited by the IRS, maintaining proper records, filing on-time, and complying with state laws can help to reduce your chances. Read more here
Still have questions? We’re here to help. We have a proven track record of saving our clients substantial amounts of money by helping them to navigate all of the tax deductions that apply to their specific circumstances. We’ll make it our mission to help you save as much money as possible by applying this same methodology to your business.