In Denver Colorado Marijuana business must file federal income tax returns but pot is labeled illegal at the Federal level. What deductions can dispensaries make when filing their taxes this year? According to the IRS cannabis is a Schedule 1 drug and trafficking controlled substances is Federally prohibited. Therefore, cannabis companies cannot deduct:
Companies must pay for these expenses but the cost of growing the cannabis can be deducted when the firms file their 2016 tax returns. It’s a good idea for companies to expedite the sales process by moving product quickly from growing to consumption with as little gap in the production rocess as possible in order to keep the cost of goods sold down. The taxes are killer with 40%-90% imposed on companies nationwide and this has kept dispensaries on their toes when conducting day-to-day operations. It’s tax time and the question for cannabis businesses is not if you are going to get audited but when are you going to get audited. Cannabis Tax and Accounting Services Ready Audit is the one stop shop solution for companies to find a reliable way to account for their costs of goods and Cannabis Tax and Accounting Services makes sure your accounting is in order. The benefits are bountiful and with the changing cannabis industry you will have a partner to guide you through the changes.