Accounting, Auditing and Tax Considerations for the Cannabis Industry
States have been passing legislation that legalizes cannabis for medicinal and recreational use, and the producers and retailers in this industry have been growing. Accounting and financial professionals are now tasked with navigating the often contrary state and federal laws. With cannabis being classified as a Schedule 1 controlled substance under the Federal Controlled Substances Act of 1970 and subject to federal prosecution, can CPAs offer services to clients that operate in this industry? If the CPA does offer services, what are the major tax issues (federal and state) that impact this industry? This course will answer these questions as well as provide the guidance that accounting professionals need to know to offer services in the cannabis industry.
Understand the risks of taking on a client in the cannabis industry and IRC Section 280E and what deductions are and not allowed to a cannabis business. Recognize state reporting rules, federal reporting rules and differentiate between the federal and state filing requirements. Apply various state sales and excise taxes that apply to the sale of cannabis. Recognize why banks won’t allow cannabis based businesses to open a bank account. Also understand the treatment of revenue and inventory, audit considerations, understand sustainability reporting issues.
Any accounting or financial professional that works directly or indirectly in the cannabis industry or is interested in learning more about how this recent state legislation is impacting the accounting profession.
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Applicable if you are a NVCPA member in good standing.
Applicable if you are not a NVCPA member.
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