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.
accountants at a crossroads in serving clients in an emerging industry.
by justin p. breidenbach ohio wesleyan university
being a cpa and academic, it’s not unusual to answer unique questions related to accounting. whether they’re questions about taxes, financial statements, internal controls, or just understanding operational efficiencies, people are usually trying to understand the various paths to success through the numbers — or they’re looking for a secret nugget of information that will keep more cash in their pocket.
inquiries like that are all in a day’s work for an accountant. i’ve discovered that there are few surprises, and eventually the promise of a new and exciting question fades away. although i constantly tell people how accounting is more than just debits and credits, i feel like we all have times where monotony sneaks its way into our professional life.
that all changed for me two years ago, when i got a question that not only surprised me, but wasn’t easily answered without some extensive research.
the straight dope on the cannabis frontier. https://www.youtube.com/watch?v=iig8ay-hr-a&sns=em by 卡塔尔世界杯常规比赛时间 cannabizcpa.pro mary jane has been good jim marty, cpa. he approached her carefully, slowly, unsure whether the apparent risk…
…legalization of marijuana in colorado. today he runs a nationwide network of cpa firms focussing on cannabis industry clients, perhaps the largest collection of cannabis-specialist cpas in the country. the…
for a couple of years now, guske & co. pllc, has been venturing into a vast new niche in the great northwest where the people are nice, easy-going entrepreneurs with a pioneering spirit and a willingness to learn, follow rules, and take risks. his niche — the booming cannabis biz. booming to the tune of 250 new clients in two years, an annual growth rate of 80 percent.
when dean guske attends trade shows like the world cannabis congress & business expo, he isn’t proffering pipes, papers, pot, hydroponics, or paraphernalia. a cpa with over 250 clients in washington and oregon, guske is pushing tax prep and accountancy.
guske & company pllc got into this vast niche by professional coincidence, a client who liked the firm’s work and asked for some tax help with a new business. he was growing marijuana. this was new to guske, but it sounded interesting.
“i told him i’d have to do some research first,” guske tells 卡塔尔世界杯常规比赛时间. “i wanted to get a good understanding of what was going on tax-wise and an understanding of the industry before i accepted a client in that industry.”
…world of legal weed. as cfo of growco, which provides growing infrastructure and water to licensed cannabis farmers, he’s on the cutting edge of an industry that is showing all…
the growth of legal marijuana businesses, from growing to retailing, has opened a new niche—or really a bunch of niches—for cpas.
among them are bookkeeping, internal control, tax accounting and preparation, management, holding companies, and general business council. the opportunities are born of the complexities behind them.
one of the opportunities is the valuation of these brave, new businesses as aggressive investors flood the market with fresh cash. “you’ve heard of the gold rush of the 1800’s,” one industry insider tells 卡塔尔世界杯常规比赛时间. “well, this is the ‘green rush.’”
“legal marijuana is a very good business,” says ron seigneur, mba, cpa/abv, asa, cva, cff, and a well-known advocate for cpas in the art and science of business valuation. seigneur, of denver-based seigneur gustafson llp, writes the introduction to the report. cpa jim marty of bridge west cpas, also denver-based, authors much of the report. marty has quickly emerged as one of a handful of nationally recognized accountants in the business.
several factors contribute to the opportunities of valuation. and several other factors contribute to the complications. in all, 卡塔尔世界杯常规比赛时间 finds dozens of points that shouldn’t go overlooked. some are germane in any valuation engagement. others are peculiar to the cannabis business. all require especially careful review in this fast-changing legal and regulatory environment.
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