10 Hemp Write- Offs that Minimize Taxes

So why do I like hemp companies?

Simple: they get many of the benefits of pure cannabis companies, but the risk and cost is lower.

By selling hemp instead of pure cannabis, you instantly avoid two major taxes:

• 280E

• Excise tax (hemp is not taxed on this in most states)

So let’s talk about profitability.  Revenues aren’t ravaged by sales and excise taxes, and profits aren’t taken below negative by 280E. But you may be wondering about what write-offs you can take if you were operating in hemp.

Well, here are 10 hemp deductions that minimize taxes:

1. Cost of Goods Sold

2. Salaries and Wages

3. Advertising and Marketing

4. Rent

5. Depreciation

6. Taxes and Licenses

7. Interest Expenses

8. Utilities

9. Legal and Professional Fees

10. Repairs and Maitenance

Hemp companies can almost always benefit from these, which can range anywhere from 12-37 cents on the dollar.  For cannabis resellers, these are exclusive benefits to hemp companies, and pure TCH products won’t qualify for these write offs.

So if you’re trying to figure out what to look for when doing your accounting, then zoom in on these expense types and your business will thank you for it.

Grow on,

Jonathan Sussman CPA