Cannabis Businesses Self-Study
Cannabis is a multibillion-dollar industry. Many states have passed legislation legalizing either medical or recreational use of cannabis, or both. However, because it remains an illegal drug at the federal level, tax preparation isn’t straightforward. In this course, you will gain a basic understanding of the issues unique to accounting for illegal activities such as the cannabis industry. We review the cash nature of the industry, the reporting limitations for illegal activities and the restrictions on deducting certain types of expenses. We will also discuss the difference between independent contractors and employees, and tax preparers responsibilities when engaging cannabis clients.
Upon completion of this course, you will be able to:
- Identify why the industry is considered illegal at the federal level even if it is legal at the state level
- Summarize why the industry is currently a cash business
- Calculate cost of goods sold
- Prepare Schedule C for a cannabis business
- Recognize the difference between independent contractors and employees
This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.