Cannabis

Overview



















The professionals of Grassi & Co. have the expertise necessary to help navigate through the many challenges those in the business of cannabis are experiencing on a daily basis. Our professionals work with large physician groups, hospitals and others in the industry guiding them through similar complicated regulations and complex tax structures. Most importantly, we help our clients look ahead and position themselves where the industry is going and navigate to future success. 

Understanding tax laws related to this industry can be a tumultuous undertaking. Currently, expenses related to Cannabis are not tax deductible other than the cost to actually produce the product. With our staff of over 300 auditors and tax professionals, coupled with our affiliation with Moore Stephens International, our professionals at Grassi & Co. have both a local presence and a national footprint. We have strategic partnerships nationally, in Canada and internationally. Because of federal laws, obtaining and processing money is more complicated in the cannabis business than compared to a typical business. Classified federally as a Schedule 1 substance, making it illegal to sell, to distribute and to cultivate, traditional banks are unable to participate in this growing industry. So, where do you put the money?

That is one of the most important issues we hear from our clients in this space.

Here is how our dedicated professionals can help:

Cannabis Experience:

We work with:
• Medical cannabis dispensaries
• Cannabis technology companies
• Cannabis landowners
• Private equity
• Family office

Here are some important tax areas we assist with:
• IRS 280E
• State and local income and sales tax
• Maximize your cost of goods sold (COGS)
• Understand how to allocate your expenses for most tax efficient IRS reporting
• Structuring your entity in a way that works best for your business type and results in most tax savings
• Determine alternate arrangements
• Diversify
• Capitalize on investment opportunities
• Supply Chain Analysis

Other services we offer:
• Accounting services including:
»» Bookkeeping
»» Cash management
»» Internal controls
»» Inventory control and costing

• Mergers & Acquisitions:
»» Due diligence
»» Buy side and sell representation
»» Strategic tax planning
• Financial Statements
»» Audit
»» Review
»» Compilation
»» Audit readiness

• Consulting:
»» Cash processing procedures
»» Accounting and inventory softwareimplementation
 
• Investment Planning:
»» Future projections
»» Budgeting
»» Tax consulting
»» Choice of entity
»» Preparation of form 8300
»» Sales use and excise taxes

Team

Robert M. Bernstein Partner
Patrick J. Fahey Partner
Karl Kispert Principal
Peter Metz Principal
Victoria Pellegrino Partner, Financial Services Practice Leader
John V. Pellitteri Partner, Healthcare and Accounting Services Leader
Anthony Tomaro Partner-in-Charge of Grassi Consulting Services
Michael A. Violano Principal
Pasquale Rafanelli Valuation Senior Manager

Newsletters & Alerts

Good Books and Good Records Could Keep the IRS At Bay

Just when we thought it was safe to file a tax return, we find the IRS’s strikes again!
 

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EAlert: IRS Issues Workarounds for SALT Deduction

On December 22, 2017 President Trump signed into law the Tax Cuts and Jobs Act. 

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Events

The Business of Cannabis

John Pellitteri, panelist at NJBiz, "The Buisness of Cannabis"

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