Cannabis

The cannabis industry is extraordinarily complex from both a tax and a business operation perspective. I work with cannabis business including cultivators (growers), dispensaries, and marijuana infused products (MIPs). I have a high level of expertise in this industry in areas of both taxes, operations, and financial management.

One of the most challenging areas of the industry is Section 280E of the IRS code which prevents businesses from deducting expenses such as advertising, selling expenses. Businesses are only allowed to reduce gross receipts by properly calculating cost of goods sold (COGS).

I combine my knowledge of cannabis taxation with expertise in cost accounting, inventory management, and supply chain management to assist cannabis clients increase profitability and cash flow.

Areas of Expertise include:

  • IRS Code Section 280E – Cost of Goods Sold (COGS)
  • IRS Code Section 471 – Small Business Taxpayers and Inventory Valuation
  • IRS Code Section 263A – Inventory Valuation and COGS
  • IRS Section 481 – Change in Accounting
  • IRS Representation and Past Due Tax Liabilities
  • Inventory Valuation
  • Business Planning
  • Merger and Acquisition Due Diligence
  • ERP systems and Supply Chain Management

I provide CFO and financial management to cannabis clients in addition to tax planning and compliance support. In addition, I make sure that each client receives individualized attention like I am a member of their management team.

If you have questions or would like to learn more contact me at cln@northrupcpa.com.