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Written by Abraham Finberg CPA and Simon Menkes CPA As most people in the industry already know, due to Internal Revenue Code (IRC) 280E, cannabis businesses may only reduce their income with cost of goods sold (the cost of the product) to lower gross profit and save on taxes. Most tax planning involves legally increasing […]
Written By Simon Menkes CPA and Abraham Finberg CPA When we meet non-cannabis people at Hollywood parties and they find out the industry we serve, their reactions are pretty typical: “Do you get free weed?” and “Can you explain that 280E law? It’s so confusing!” While we just smile at the first question, those of […]
Written by Abraham Finberg CPA and Simon Menkes CPA “A long time ago, in a galaxy far, far away …” It is a time of civil war, and the REBEL CANNABIS BUSINESS OWNERS are fighting battles on all fronts with the STORMTROOPERS from the federal, state, and local TAX AUTHORITIES. This article is about one […]
How to navigate reporting and paying taxes on cash income without being able to get a business bank account? Does the IRS care whether the income reported is cash from growing Cannabis? Find out in this panel discussion with Simon Menkes, CPA.
Written by Abraham Finberg, CPA and Simon Menkes, CPA In December of 2018, the Grinch visited more than just a few unlucky homes in America. He also appeared in the guise of a couple of judges who ruled on the Harborside and Alternative/Wellness (Donald Duncan) cases. The Harborside Case in a Nutshell: In the Harborside case, […]
On January 01, 2018, when California cannabis cultivators harvest products enter the commercial market, they will need to pay their distributor $9.25 per dry-weight ounce of cannabis flowers, and $2.75 per dry-weight ounce of cannabis leaves. That sentence is quite a mouthful and is definitely not using terms a master grower would use so let’s […]
Tax auditors rely on bank accounts as an independent third party to prove you actually had expenses. They are at a loss when a cannabis company does not have a bank account. As a rule of thumb, when a tax auditor is “at a loss” they deny all expenses and leave it up to you […]
Innocent until proven guilty… NOT. When it comes to paying taxes, auditors have an advantage: you have to prove you filed your taxes correctly; once you do, it’s their job to show your proof is wrong. You gave them your point of sale records, bank statements (if your company has them), and all your tax […]
