Taxation Troubles for Cannabis Businesses: What You Need to Know: Breaking Down Tax Barriers

About the Course:

If you are a small business consultant or tax professional providing tax services to taxpayers operating a retail or manufacturer of cannabis products, you need to be aware of the tax rules associated with those two forms of business. Although many states have legalized the use and sale of cannabis products, federal law still considers the sale of these products as illegal. Hence, the business expenses associated with these businesses operate under a different set of Internal Revenue Code rules. Their rules are significantly different from other forms of business and, as such, it is critical for consultants and tax professionals to be current on the application of these rules for their clients.

Course Objective:

• As the number of states grow that legalize the sale of cannabis, taxpayers engaged in the production of, and/or sales of cannabis products face challenging questions about the deductibility of the company’s business expenses.
• Small business consultants and tax professionals need to be aware of the tax rules associated with those two forms of business. In addition, some new businesses are both retailers and manufacturers of cannabis products, which operate under different tax rules.
• Although many states have legalized the use and sale of cannabis products, federal law still considers the sale of these products as illegal. Hence, the business expenses associated with these businesses operate under a different set of Internal Revenue Code rules. Their rules are significantly different from other forms of business and, as such, it is critical for consultants and tax professionals to be current on the application of these rules for their clients.
• In this webinar, we introduce the underlying federal income tax treatment for retailers and for manufacturers of cannabis products. In addition, we discuss the issues associated with businesses that are both retailers and manufacturers of cannabis products. Finally, we discuss the general reporting rules for deducting these business costs.

Who is the Target Audience?

• Anyone can attend whoever is interested

Basic Knowledge:

• Basic Knowledge of Taxation, Legal Status of Cannabis, State and Local Tax Regulations, Familiarity with Section 280E, a basic knowledge should be fine.