Taxation of Cannabis
Craig W. Smalley, E.A., has been admitted to practice before the Internal Revenue Service, is a Certified Tax Specialist, a Certified Estate and Trust Specialist, and has a Tax Certificate from UCLA. He has been in practice since 1994. He specializes in taxation, tax consulting, and tax planning. In addition, Craig has been published by the Washington Post, Chicago Tribune, New York Times, and is currently a columnist for Accounting WEB, CPA Practice Advisor, EA Journal, and AICPA Tax Insider. Craig is also the Co-Founder and CEO of CWSEAPA®, Tax Crisis Center®, and The Cannabis Accounting Group. In his years of practice, he has represented thousands of clients before the IRS and other State Agencies. Craig is located in Orlando, Florida.
The taxation of cannabis is different from any other business. Cannabis businesses are constricted by IRC §280E. However, there are many Tax Court cases that shed a light on 280E, and some strategies that you can employ for your cannabis clients.
For the typical cannabis retailer, cost of goods sold(COGS) would include the marijuana that was purchased and the percentage of rent and utilities paid for the portion of the establishment that houses the inventory.
- IRC §280E
- Edmundson v. Commissioner
- Californians Helping Alleviate Medical Problems (CHAMPS) v. Commissioner, and other cases
Course Level - Advance
Who Should Attend
- Enrolled agents
- CPAs, and any tax professional looking to take on cannabis clients
Why Should Attend
Cannabis is becoming more and more prevalent for the tax professional. It is important for tax professionals to discern and fully comprehend IRC §280E and its implications on the cannabis industry.