Accounting, Auditing, and Tax Considerations for the Cannabis Industry (Morning Session)

Friday, December 10 8:45am - 12:15pm

(Check-In 8:45am)

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4.00 Credits

Member Price $160.00

Non-Member Price $225.00

Overview

States have been passing legislation that legalizes cannabis for medicinal and recreational use, and the producers and retailers in this industry have been growing. Accounting and financial professionals are now tasked with navigating the often contrary state and federal laws. With cannabis being classified as a Schedule 1 controlled substance under the Federal Controlled Substances Act of 1970 and subject to federal prosecution, can CPAs offer services to clients that operate in this industry? If the CPA does offer services, what are the major tax issues (federal and state) that impact this industry? This course will answer these questions as well as provide the guidance that accounting professionals need to know to offer services in the cannabis industry.

Highlights

  • Types of cannabis-related businesses
  • Risk considerations for services offered in the cannabis industry
  • Recognizing what costs are and are not considered cost of sales under IRC Section 280E 
  • Recognize if the entity conducts a business separate from the cannabis sales that may allow some deductions aside from cost of sales
  • State and federal tax differences
  • Cash-based business audit considerations
  • Financial reporting considerations

Prerequisites

Basic auditing, accounting, and tax experience

Designed For

Any accounting or financial professional that works directly or indirectly in the cannabis industry or is interested in learning more about how this recent state legislation is impacting the accounting profession.

Objectives

Participants will be able to:

  • Define the risks of taking on a client in the cannabis industry
  • Recognize state reporting rules for a cannabis business
  • Recognize federal reporting rules for a cannabis business
  • Properly account for a cannabis business
  • Identify and implement appropriate internal controls for a cannabis business
  • Differentiate federal income tax issues between ordinary business and a cannabis business
  • Use knowledge of IRC Section 280E to determine what deductions are not allowed for a cannabis business
  • Identify and apply various state and local tax issues that apply to the sale of cannabis 

Notice

By registering for this program and, accordingly, receiving the eMaterials, you're acknowledging that you understand both the copyright restrictions on your eMaterials and the CTCPA cancellation policy.

Leader(s):

Leaders

Kenneth Heaslip

Kenneth Heaslip, MS, MBA, CPA, CGMA, licensed as a CPA in New Jersey, is a discussion leader and Content Specialist Instructor for Loscalzo Associates Ltd., a division of SmartPros, a Kaplan company. Kenn has extensive experience teaching all levels of accounting, auditing, and other practice-related areas. He has served as Vice President and Trustee of the New Jersey Society of CPAs, Secretary of their Scholarship Fund, President of the Essex Chapter, and chair of several task forces. He is an active member of many society committees in accounting and auditing, taxation, and student programs, as well as past chair of the Educators Committee. Kenn currently serves on the NJCPA Professional Conduct Committee. He is a Director at Leaf, Miele, Manganelli, Fortunato & Engel LLP, a regional CPA firm in New Jersey and New York City.

Kenn has been a Professor of Accounting at Bloomfield College and Kean University, as well as an Executive in Residence at Seton Hall University, where he was the students’ choice as Educator of the Year two years in a row. He taught in the Executive MBA program at Rutgers University and has been with Becker CPA Review since 1983, serving as National Director for several years. As National Director, he was lead editor of course content and oversaw the hiring and training of 350 instructors on staff. Kenn has lectured extensively throughout the United States, Canada, and Asia.

Kenn earned his BA from Rutgers University and has an MS in taxation and MBA in finance from Seton Hall University.

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Non-Member Price $225.00

Member Price $160.00