Every type of business involved in the cultivation and sale of cannabis is subject to the challenges of complying with financial and tax regulations. Due to the unique legal nature of cannabis-based products in the United States, keeping up with laws regarding tax filing, accounting and bookkeeping is far more complex than it is in other industries. The good news is that Cannabis CPA is here to provide comprehensive tax and accounting solutions for harvesters that are backed by our extensive expertise and our network of experts. Whether you have a large growing operation that includes harvesting or are independent harvester specialists, we can help you manage your finances.
Tax And Accounting Solutions For Harvesters
Working Within Tax Code § 280E
Even though medicinal and/or recreation cannabis use is legal in many states, the federal government still considers it a Schedule I controlled substance. This means companies that buy and sell cannabis products must contend with serious restrictions. Specifically, Tax Code § 280E prohibits them from making “ordinary” business deductions when filing their taxes, meaning they effectively pay higher effective tax rates than other industries.
Making things more complicated is the fact that harvesters may be able to make some deductions at the state level, but not at the federal level. This is why it pays to have us serving as financial consultants for harvesters can make a lot of sense. With our help, harvesters can reduce their tax liability as much as possible and improve their financial standing.
Our Services for Cannabis Harvesting Operations
Our CPA services for harvesters work to help our clients:
- Establish the proper corporate structure to optimize their tax situation
- Understand what they can and cannot deduct under COGS
- Implement systems for recording hours worked directly in production
- Deduct portions of the labor costs not directly involved in production
- Distinguish direct and indirect expenses for tax purposes
- Maintain compliance with all relevant rules and regulations
Why Choose Cannabis CPA?
Our harvester accounting services enable us to fulfill multiple roles within your organization. It’s like having your own CFO, but on an outsourced basis. With years of industry-specific experience, our experts help clients determine what they can deduct and understand how to file their taxes. Working with us means you can be compliant with tax regulations and establish the correct tax structure for your business. If you want to learn more about what we can do, reach out and speak with us today.