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U.S. Tax Code § 280E

280E – UGH – there is that phrase again!

You have heard about it and know that it is related to the IRS and filing taxes. You know it may affect your business, although, you are not quite sure how. But, since it is related to the IRS and taxes, you may feel that it is not something you need to concern yourself with right now because the more important tasks are just getting your business running.

This is where I am going to say that we should talk. Let’s talk about how to set your business finances up properly, from the start, in order to minimize your 280E tax burden.

So, what is 280E? Simply stated, it is a way for the government to heavily tax organizations operating in illegal businesses/trades. And, lets face it, the IRS and DEA continue to consider cannabis and its extracts to be illegal. And in some cases, CBD is still considered a schedule I drug- even if it is derived from Hemp. 280E disallows certain operational expenses to be deducted from taxable income: all marketing related expenses which includes sales people, website costs, any advertising expenses, some insurance expenses, banking fees, state income taxes, etc.

However, did you know that

  • there are strategies that can be implemented to minimize 280E tax consequences?
  • the layout of your facility can have a significant impact on your taxes?
  • your accounting processes can impact allowable expenses in your Cost of Goods Sold?
  • If you answered no to any of those above 3 questions, then we should talk. I’m here to help you save money and minimize the punitive effects of 280E.

Form 8300

Maybe you have heard of it, maybe not.

But what is it and is it important?

Does your business handle large sums of cash, or plan to in the future? If so, then you need to know about Form 8300.

The good news is that this form will not cost your business extra money, just some time. The bad news is that if your business should have filed one and didn’t, you can be charged with fines and penalties. Lets talk about it. It’s better to spend a few minutes getting educated on the subject than to get the government scolding you for not filling out required paperwork!

I am here to help you. I want to help you. Lets talk about how I can help you, because I can.

I look forward to hearing from you.

Contact me today to learn how I might help you with your business.