280E Accountants
There are many good accountants out there. If your accountant doesn't specialize in IRS Code Sections 280E and 471, however, they aren't a good fit for your cannabis business. Go with a team who knows how to keep you compliant and minimize your taxes.
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Did you know?
Without proper accounting, a cannabis retailer can end up with more than double the taxable income of a traditional retailer, despite the same revenue and expenses.
The Burden of 280E On Cannabis Retailers
Companies have tried to "beat" Section 280E through complex management agreements and organizational structures that ultimately crumble when audited. Dark Horse Cannabis CPAs don’t try to “beat” 280E, but we work within the confines of the code to legally maximize your tax deductions. Our team of experts combs through the details of your company operations to save you money.
Frequently Asked Questions
I own a retail operation. Can I deduct wages paid to my employees?
In most cases, no, these wages are not deductible for federal tax purposes because of the rules of 280E.
I’m a cultivator, what is my cost of goods sold?
Cultivators should be performing in-depth analysis of costs associated with growing and packaging to maximize the cost of their inventory, and therefore maximize the deduction for the cost of goods sold.
Can I use the cash basis of accounting under 280E?
To maximize tax deductions under 280E, businesses should be using the accrual basis of accounting.
My tax return shows deductions other than the cost of goods sold – is that right?
It would stand to reason that if the IRS saw a return for a cannabis company with deductions other than the cost of goods sold, it would raise a red flag. Tax return presentation is vitally important – even if the net income on the return ultimately is correct, incorrect presentation on the return could lead to increased IRS scrutiny.
Come One, Come All
We work with all businesses in the cannabis industry—from seed to sale!
Full Spectrum Accounting, Tax, and Advisory Support
Our services include tax planning and prep, full-service bookkeeping, and Fractional CFO services to help you make the best financial decisions for your business.
Planning for Your Business’s Future
The cannabis industry is evolving and rapidly changing all across the country. We provide extensive tax planning and financial forecasting to help you plan for what’s ahead.
I had an excellent experience with John Warner preparing my taxes this year. He has the ideal combination of highly detailed knowledge of tax law and good communication skills. The online system he uses for clients to enter info and upload documents is clear and easy to use; the process for entering everything seemed extremely efficient to me. When he was finished preparing my returns, he made a video, walking me through the return, and I found that very helpful. I plan to call upon him again when it's time to prepare returns next year, and I highly recommend him.
Why Dark Horse?
We work in the industry because we are passionate about the industry. We want to see your Canna-Business succeed, and we'll do everything we can to help you along the way.
