Cannabis

Overview

The Cannabis advisors at Grassi 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 Global Network Limited, our professionals at Grassi 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 decicated and experienced Cannabis advisors can help:

Clients we work with:

 
  • Medical cannabis dispensaries
  • Cannabis technology companies
  • Cannabis landowners
  • Private equity
  • Family office

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
  •   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 software implementation
 
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
Howard Fielstein Partner
John V. Pellitteri Partner, Healthcare, Cannabis and Accounting Services Leader
Anthony Tomaro Partner, Consulting Services Leader
Dorothy McAuliffe Senior Tax Manager

Press release

Grassi & Co. Promotes Michael A. Violano to Audit Partner

Leading accounting, tax and advisory firm, Grassi & Co., has announced that Michael A. Violano was promoted to Audit Partner in their Manufacturing & Distribution Practice effective January 1, 2019 and will be heading up the building materials sub-segment.
 

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Articles & Alerts

Tax Woes Continue for Cannabis Industry

Like many issues in the emerging Cannabis industry, the taxation of the production, sale and distribution of state-legalized marijuana is complicated and burdensome on the cannabis business owner. Despite significant advances in state legalization last year, tax savings strategies will remain limited as long as cannabis is classified as a federally illegal schedule 1 substance.

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Panel: Lack of Guidance Means Cannabis Industry Tax Planning Often Depends on Clients' Risk Tolerance

John Pellitteri, Cannabis Practice Leader, was featured in The Trusted Professional for his contributions to the Foundation for Accounting Education's 2019 Cannabis Conference panel.

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Warning to Americans Investing In Certain Canadian Cannabis Stocks That Have A U.S. Presence

You could be (up to) 33% worse off than compared with investing in U.S. stocks because of taxes! Learn the rules on minimizing the additional taxes before you invest.

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Alert: Validating Cyber Risks in the Cannabis Industry

With information gathered from assets in the underground (involved with the dark web) and conversations with federal authorities, investigations disclosed that, while there is no specific group actively targeting the cannabis industry, there are hackers focusing on three areas within the Seed to Sale lifecycle: research and extraction; growing; and consumption and retail operations.
 

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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

Cannabis Market Playbook 2020

Join Grassi's Cannabis professionals as we sponsor and attend CannaGather NY's first meeting of the new year, Cannabis Market Playbook 2020.

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NYSSCPA Cannabis Conference

John Pellitteri, Partner and Cannabis Practice Leader, will be speaking at the 2019 Cannabis Conference, hosted by the NYSSCPA. This educational and networking event will explore the latest trends, outlooks and opportunities emerging in this billion-dollar industry.

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IMA Member Meeting: The Business of Cannabis

John V. Pellitteri, Partner and Cannabis Practice Leader, will speak on "The Business of Cannabis" at the Institute of Management Accountants (IMA) Morris-Essex Chapter dinner meeting.

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High NY Cannabis Business Soiree

Robert Bernstein, Partner at Grassi & Co. will be speaking at this highly enjoyable evening of delicious food, resfreshing drinks, and meaningful discussions with other Cannabis industry leaders.

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The Business of Cannabis

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

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