Do you have questions you would like answered by your peers in the proformative community?

Elizabeth Pearce CFO

Accounting for the marijuana industry - UNICAP & 280e

Asked on July 29, 2014

First, is there a working group? A group of professionals working with the IRS to develop best practices for the Medical Marijuana Industry? If it doesn't exist yet, we should create one. Feel free to reach out to me here or via LinkedIn it you would like to be put in touch via email. I just finished reading Professor Annette Nellen's article on Marijuana and the Tax Law: Issues Faced by Tax Practitioners in Representation of Clients. http://www.21stcenturytaxation.com/uploads/Tax_Ethics_and_Marijuana_2014.pdf It was sobering. But Section 280E seems to be somewhat offset by Uniform Capitalization Rules under Section 263A and the Full Absorption Inventory Cost Method (Section 471) available to farmers. What do you think?

Answers

Elizabeth Pearce CFO • July 28, 2014

Be sure you check out this NY Times Op-Ed
http://www.nytimes.com/interactive/2014/07/27/opinion/sunday/high-time-marijuana-legalization.html?ref=opinion&_r=0

And this article from the Pew Research Center http://www.pewresearch.org/fact-tank/2014/04/07/6-facts-about-marijuana/

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