Contact Us to Get Started
Copyright @2013-2019 ALL RIGHTS RESERVED.
You won’t get a Section 199A tax deduction for your cannabis business. But some of the other tax reform changes may make the C corporation a more attractive choice of entity than before.
Let’s look at an example. Say the cannabis business has the following financials:
If the business is an S corporation and you are in the 32 percent federal income tax bracket:
If the business is a C corporation:
Because Section 280E creates “phantom” income for tax purposes (that is, the income doesn’t exist in real cash), it makes the S corporation and other pass-through entities less attractive overall for the cannabis business.
We're Here to Help
Get advice from our experienced network of financial managers.
Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.