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, but allowed to
be sold in an increasing number of states, what are the major accounting and tax issues
(federal and state) that impact this industry? This course will provide the basic guidance that
accounting professionals need to know to offer services in the cannabis industry.
This course features a live instructor and has been specifically designed for the NJCPA.
DESIGNED FOR
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.
BENEFITS
- Recognize state reporting rules for a cannabis business
- Recognize federal reporting rules for a cannabis business
- Properly account for a cannabis business
- Identify and implement appropriate internal controls for a cannabis business
- Differentiate federal income tax issues between ordinary business and a cannabis
business
- Use knowledge of IRC Section 280E to determine what deductions are not allowed for a
cannabis business
- Identify and apply various state and local tax issues that apply to the sale of cannabis
HIGHLIGHTS
- Types of cannabis-related businesses
- Risk considerations for services offered in the cannabis industry
- Recognizing what costs are and are not considered cost of sales under IRC Section 280E
- Recognize if the entity conducts a business separate from the cannabis sales that may
allow some deductions aside from cost of sales
- State and federal tax differences
- Cash-based business audit considerations
- Financial reporting considerations
COURSE LEVEL
Basic
PREREQUISITES
Basic auditing, accounting, and tax experience
ADVANCE PREPARATION
None