Cannabis businesses face unique tax challenges. QTA Tax has the expertise to help you navigate them. We work with dispensaries, cultivators, and cannabis product companies. Our team understands federal and state cannabis tax rules. We help you stay compliant and profitable.
IRS Section 280E is the biggest tax issue for cannabis businesses. It prevents deduction of most business expenses. Only cost of goods sold (COGS) can be deducted. Proper COGS allocation is essential to reduce your tax bill. We know how to maximize your allowable deductions within the law.
State licensing and reporting add more complexity. Illinois has specific cannabis tax rates and reporting rules. We help you meet all state filing requirements on time. We also track local municipality taxes that may apply. Staying compliant protects your license.
Multi-state cannabis operators face additional challenges. Each state has different tax rules for cannabis. We prepare returns for operations in multiple states. We also handle transfer pricing between related entities. Our team keeps you compliant across all jurisdictions.
Accurate bookkeeping is critical for cannabis businesses. We separate COGS from other expenses carefully. We maintain records that can withstand IRS scrutiny. Our systems are audit-ready at all times. Good records are your best defense in an audit.
Call 630-881-4679 to discuss your cannabis business tax needs. Our Oak Brook team is experienced with 280E compliance and cannabis tax planning.