Because of heightened scrutiny and regulations, tax preparation can be a challenge for plant-touching cannabis businesses. In an article for Cannabis Dispensary, Rebel Rock CFO and Co-founder Melissa Diaz offered several strategies and tips for businesses to better navigate tax preparations.
In the article, Melissa highlights some of the nuances of Internal Revenue Code 280E, which limits what expenses cannabis businesses can deduct on their taxes. She underscores the importance for plant-touching companies to properly account for square footage and employee classifications that directly contribute to the cost of goods sold. She also emphasizes the importance of keeping and providing detailed records for cannabis operators to justify deductions and defend themselves against the IRS.
Tax preparation for cannabis businesses can be complicated and requires an experienced hand to guide companies through the process. The professionals at Rebel Rock are intimately familiar with the intricacies of 280E and can navigate your business through tax season and beyond. Learn more about our full slate of services including taxes.