Cannabis Businesses have a tough time when it come to tax season. Thanks to Reagan’s 280-E Amendment and Nixon’s Schedule 1 Ruling on Cannabis, businesses cannot conduct the same practices as every other industry. Basic write-off’s like rent, supplies, or salaries are not allowed; which I feel is a major proponent for businesses wanting to stay underground after 2018, but that’s for another story. All these new non-deductible expenses will dampen and damage companies, but there have been some solutions to help ease the tax burden. Leasing is one of them.
With the final markings of new regulations coming out in Mid November, business owners need to be weary of all the taxes they have to pay. Everything from Cultivation Taxes, Dry-Weight Tax, Excise Tax, Sales Tax, etc. have to be accounted for; let alone the higher costs of business from Licensing Fees and Regulative Production Fees.
During our visit to San Francisco for the California Cannabis Investment Forum , one of the speakers had a brilliant solution to deduct some high-cost items, and keep some money in your pocket. Allen Gold is a Serial Entrepreneur that has made a name for himself in Venture Capital, Finance, Debt Products, Fashion and Leasing. He has now set his sights on the Cannabis Industry.
Allen’s company is MJ Leasing. This business will provide any type of equipment (from Farming to Processing) for lease. This is a huge benefit since some machines and structures can cost north of $100,000. Better yet, you can write these items off on your taxes!
When you lease a product, the expense is now able to fit into a different tax category, therefor giving you the ability to write off the lease amount and interest. But wait, it gets better. If you have already bought the item, their company will purchase it from you, and lease it back to you. Not only will you get some extra funds to invest into any needed areas of your business, you will also be able to write off the cost of the item.
We sat down with Allen to get a better understanding of how his company can help the community. Below is our interview and list of questions. If you would like to contact him, his information is at the end of the video.
What got you involved in Cannabis?
What makes Leasing so important?
Where’s the Future of Cannabis?
How to take advantage after already purchasing an item?
Are you support of Federal Legalization?