The rules around IRS Section 280E are currently undergoing massive changes. While the recent federal shift of state-licensed medical marijuana to Schedule III provides significant 280E tax relief for medical operators, recreational cannabis remains on Schedule I and is still fully subject to 280E restrictions. Whether you are a recreational operator needing to strictly allocate your expenses to Cost of Goods Sold (COGS), a medical operator ready to claim standard deductions, or a dual-licensed business facing complex expense apportionment, we provide the strategic tax planning required to minimize your liability and keep you fully compliant during this federal transition.

With state-licensed medical cannabis now classified as Schedule III, your medical operations are exempt from IRS Section 280E, allowing you to deduct standard business expenses. However, because recreational cannabis remains Schedule I, 280E still strictly applies to that side of your business. As a dual-licensed operator, you must now implement precise expense apportionment—cleanly separating shared costs like labor, rent, and software between your medical and adult-use operations. We help you establish defensible allocation methodologies and restructure your chart of accounts so you can maximize your new medical tax deductions without triggering IRS compliance issues on your recreational side.

The cannabis industry faces unique regulatory, banking, and tax challenges that standard accountants aren't trained to handle. A specialized CFO understands seed-to-sale tracking, state-specific compliance, and 280E, ensuring you don't overpay on taxes or face costly audits, all at a fraction of the cost of a full-time executive.

Yes. Due to federal banking restrictions, cash management is one of the biggest hurdles in the cannabis sector. We implement robust cash flow forecasting, budgeting strategies, and internal controls to help you manage capital efficiently and prepare for future investments or expansion.

Getting started is simple! Click the Book Now button at the top of our website to schedule a free initial consultation. We'll discuss your current financial challenges, review your operations, and outline a customized strategy to protect your margins and grow your business.