cannabis complications for cpas, clients and consumers.
by justin p. breidenbach
cannabizcpa.pro
providing a client with tax services can be hard work. things get especially difficult when an accountant becomes the bearer of bad news. it’s never easy informing a client that they owe unexpected or, what the client believes to be, unreasonable taxes. imagine a situation where you had to tell a client that their effective tax rate is 70%, 90%, or even exceeds 100%.
i expect some may be reading this and asking themselves, “what tax hell would require a taxpayer to pay an effective rate exceeding 100%?” i am here to inform you that this does exist, and in the marijuana industry it is known as section 280e.
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