CPA Services for Cultivators
The multifaceted regulations concerning cannabis cultivation can be difficult for cannabis businesses that are just starting out and seasoned cannabis growers. The 280E form is a tax headache that has created costly and unnecessary consequences for any business directly involved in the sale or cultivation of cannabis.
Luckily, with Cost of Goods Sold (COGS) deductions, cannabis growers can limit their tax liabilities. Daniel M. Kavanaugh CPA and his ProBusiness Advisors LLC are here to assist you and help you understand what that means for your business. We are confident that we can assist you towards limiting unnecessary tax exposure.
We are here to answer any questions you may have. Here are the most frequently asked questions we have heard in our experience working with growers.
What deductions are available to my business?
Some of the items permitted as Costs of Goods Sold (COGS) deductions are raw materials, supplies and direct labor costs. If you prepare financial reports in compliance with GAAP, the IRS allows cannabis growers to claim some additional COGS deductions.
How do I obtain banking for my business?
Financial establishments are not always able to do business with cannabis producers, which creates a problem for people in the industry. However, it’s not impossible! We’re here to support you towards finding the right bank to fit your business needs. Read more here...
What are the licensing requirements for growers in California?
California growers are regulated by the Medical Marijuana Regulation and Safety Act (MMRSA), which depending on the type and size of your cannabis growing operation, requires specific licenses. Read more here...
How do I lower my chances of an IRS audit?
By maintaining proper records, filing on-time, and complying with state laws can help reduces your chances of being audited by the IRS. Read more here...
It’s our mission to help you save as much money as possible in your cannabusiness. Our experience and professionalism has proven to save clients a significant amount of money by helping them navigate through all of the tax deductions that apply to their specific situations. Feel free to contact us with any additional questions you may have.