It was great seeing and meeting many of our existing clients, and we also really enjoyed meeting many of you for the first time in Las Vegas at the MJBizCon.
Our 280E session was packed wall-to-wall and we were happily overwhelmed with the audience’s responses and questions.
This session included important and relevant information for cannabis businesses that included the following:
- We discussed the meaning of 280E.
- We referenced some landmarks court cases.
- We discussed the differences of entity structure for cannabis businesses. We learned the difference between flow through entities such as sole proprietorships, LLC partnerships, S- corporations and compared it with C-corporations.
- We discussed how many cannabis businesses end up with tax debt and solutions that might be available to remedy this.
- We learned what type of accounting would afford cannabis businesses additional deductions such as: production related officer compensation, production related administrative expenses, employee benefits that relate to production labor, depreciation and depletion, production related insurance, certain taxes, spoilage, etc. Additionally, we discussed that this should be done contemporaneously such as monthly or quarterly and not at year end.
- We discussed the importance of documentation and how to facilitate this.
- We informed the attendees on how to document labor and how it can be allocable to Cost of Good Sold.
- And our biggest takeaway which cannot be understated: We talked about the need for a knowledgeable and experienced cannabis CPA and cannabis attorney as early on as possible so that you can be afforded the proper advice and accounting and minimize your exposure and tax liability.
If you missed this or just want to be one of our “groupies” please join us for the following speaking engagements where I will be using educational PowerPoint presentations in more detail:
- We are hosting “A Day of Learning For New Cannabis CEOs” Oklahoma City, OK January 15, 2019
- Speaking & Exhibiting at the Indo Expo, Denver CO Jan 26 & Jan 27, 2019
- Speaking & Exhibiting at the CannaCon Seattle, WA Jan 31 – Feb 2, 2019
Sandy Suchoff, CPA is the Founder and principal of Lefstein-Suchoff, CPA & Associates, LLC D/B/A The Canna CPAs. Suchoff has been featured and interviewed on MSNBC, FOX News, and Tune In Business Talk Radio as a tax advisor, as well as ONR Oklahoma PBS TV, Chasing News on FOX & WOR, KRQE 13, Cannabis Radio, Purple Haze Radio, and Cannabis Tech & Today as an advisor on cannabis tax and accounting.