|WASHINGTON: Federal tax code 280E is the single largest hurdle for any entrepreneur attempting to create a sustainable Cannabis business. Although the sale of marijuana is legal in several states, it remains illegal under federal law, and Revenue Code 280E bans most deductions and tax credits given to businesses selling Schedule I and II controlled substances, which includes marijuana.Under current tax law, Section 280E allows marijuana businesses to deduct only their cost of goods sold all other normal and ordinary business expenses are rejected by the IRS, including marketing, training, transportation, etc. So where does this leave you, as a legitimate business owner? Is it possible to succeed under these restrictions? The answer is yes, but it requires education and creativity.
The Coalition for Cannabis Standards and Ethics (CCSE), a 501(c)(6) nonprofit, will be hosting a panel discussion on financial issues affecting the Washington cannabis industry on Thursday, July 24th from 5:30pm – 7:30pm, followed by a one-hour mixer. The panel will be held at the Armory Loft #3, inside the Center House at the Seattle Center.The panel includes some of the brightest minds tackling the 280E issue today in order to help you succeed and gain the knowledge required to overcome this daunting obstacle in the Cannabis industry. The discussion will focus on 280e and inventory accounting, best practices for managing the finances of a cannabis business, as well as access to banking. It will be sure to be a very interesting and lively discussion!Members of the panel include:
Dean Guske, CPA
Dean has over 26 years experience in the areas of taxation, accounting, and business consultation. In addition, he has become the leading expert in Washington state regarding the proper filing of tax returns for the cannabis industry. He regularly speaks to CPAs and industry leaders regarding IRC 280e and its impact on federal tax returns.
Todd Arkley, CPA (moderator)