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Cannabis Tax Planning and Compliance

Tax and business strategies to increase cash flow and ensure full compliance with all applicable states’ rules and regulations.

Reduce Tax Exposure and Ease Compliance

Our goal at GreenGrowth CPAs is to help individuals and companies in the cannabis industry identify and apply tax and business strategies to increase their cash flow while making sure they are in full compliance with all applicable states’ rules and regulations

Latest Tax Guidance

280E Deductions for Retailers

280E Deductions for Cannabis Retailers

Optimizing 280E deductions for cannabis retailers and dispensaries is the key to lowering tax exposure and boosting profitability. Above all, IRS Code 280E was intended

280E Deductions for Cannabis Cultivators

280E Deductions for Cannabis Cultivators

Until major regulatory changes occur, IRC 280E will remain the biggest obstacle to profitability for cannabis operators. The inability to deduct common operating expenses makes

Cannabis Cash Management

Cannabis Cash Log Fundamentals

With changes to cannabis banking laws stalled in Congress, cash management remains a primary operational and financial concern for cannabis business owners. The key to

How GreenGrowth CPAs Can Help with Cannabis Taxes

Our cannabis tax preparation and planning services are important because they help reduce your taxable income by delaying certain revenues and increasing spending of money in the current tax year to offset revenue. Essentially, tax planning helps you pay less taxes; better said, you should not pay more taxes than you are legally obligated to.

We can help save you time and money by:

  • Allocating your business’s non-deductible 280-E expenses in a compliant-driven manner.
  • Structuring your company to mitigate and minimize the negative impact of 280-E.
  • Ensuring that all local, state, and federal income taxes are being completed on-time and in compliance with state and federal regulations.
  • Reducing the potential outcome of an IRS tax audit.
  • And providing feedback on record-keeping and financial documentation processes.

At its core, tax planning is the analysis of your finances from a tax perspective, with the purpose of ensuring maximum tax efficiency. Some common considerations of tax planning include timing of income, size, timing of purchases, and planning for expenditures.

We advise that you get a trained and experienced cannabis CPA for tax preparation and filing your cannabis business’ state and federal tax returns. No, there is no law or regulation that requires this, we just highly recommend using a cannabis industry certified public accountant to assist with tax planning, tax preparation, and tax filing.

Using an industry professional for this service is vital to ensure that your cannabis operation is compliant and running smoothly. There are many different tax codes and nuances that are cannabis specific–like 280-E–that require an extensive background to understand what they fully mean for you and your business. It is important not to miss this in the early stages of your business, or else you risk failure. Cannabis taxes can be tricky to comprehend due to the complex nature of the industry.

We are operating in an industry that is not recognized as ‘legal’ by the United States Federal Government. So, it is left to the legalized states to implement certain laws, regulations, and tax codes for cannabis businesses. GreenGrowth CPAs can help prepare your business for an external audit by organizing and preparing the required documents necessary to show an external auditor if it were to happen.

Yes, CPAs are investments. Now, we know it’s no secret, GreenGrowth CPAs are not the cheapest when it comes to tax preparation fees. Our real value is in what we can save you on your taxes when you leverage our cannabis industry experience.

With a general CPA, you can save on the initial prep fees and will feel like you’re getting a deal when you compare them to our prices. But you’re more likely to have a bigger tax bill with that generalist CPA.

With GreenGrowth CPAs, it is a bit more upfront costs on preparation, but you are more likely able to unlock incredible tax savings because we know what we are looking for and how to help your specific type of business.

These tax savings we find for your cannabis business are something that you can take advantage of EVERY YEAR. And the more revenue you generate, the higher the potential tax savings we can recapture for you. Where else can you invest money and get back a 3x, 5x, or even 8x return on your investment?

Tax preparation and planning in the cannabis industry requires every business to prepare their company’s quarterly and annual taxes for the state and federal government, as well as for a potential audit report. Quite simply, if you calculate cannabis sales tax incorrectly (which a majority of operators do), then you will most likely have an auditor at your door getting ready to sift through ALL of your reports and paperwork. This is no joke.

Choosing a CPA in the cannabis industry to file your state and federal tax returns will inhibit anything like this from happening. It is worth the extra money to pay for a cannabis CPA expert to do your taxes so you will not have to deal with an external auditor. Although you can still be audited, you will be prepared and ready to show the auditors correct documentation.

Cannabis CPAs don’t miss any details and nuances. Cannabis business tax planning and preparation consultants follow a step-by-step procedure to ensure that your books are organized and correctly reflect the operations of your company.

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