Because of IRC §280E limitations, cannabis businesses cannot take any credits or deductions except for the cost of goods sold (COGS). Moreover, due to of the tremendous tax burden, cannabis businesses are in a constant cash crunch and in need of an accounting professional.
Cannabis accounting has become a profitable niche, yet it’s grown increasingly crowded. What do you need to know to get in and get ahead?
Most cannabis start-up businesses run on the investor money, debt and some of them barely hang in there in the hopes of imminent marijuana legalization. Cannabis businesses are ready to pay big money to the CPA that saves them in taxes and that’s what makes this niche so profitable.
Read full article at https://www.accountingweb.com/practice/growth/cannabis-accounting-highs-and-lows