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:
We work with:
• 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
• Capitalize on investment opportunities
• Supply Chain Analysis
Other services we offer:
»» Cash management
»» Internal controls
»» Inventory control and costing
• Mergers & Acquisitions:
»» Due diligence
»» Buy side and sell representation
• Financial Statements
»» Audit readiness
»» Cash processing procedures
»» Accounting and inventory software implementation
»» Future projections
»» Tax consulting
»» Choice of entity
»» Preparation of form 8300
»» Sales use and excise taxes
Grassi & Co. also offers Cyber and Information Security services, providing needed peace of mind by helping you understand risk profiles, recognize potential threats, determine risk tolerance and create a cyber and information security roadmap and program.
Files & links
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.
Newsletters & Alerts
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.
Just when we thought it was safe to file a tax return, we find the IRS’s strikes again!
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.READ MORE