Redbud Advisors and Bison Hemp Extracts got together in January 2022 to share information about how adding CBD products to your cannabis business can lower your overall tax burden.
If you aren't aware of the pesky Internal Revenue Code 280E and what it means for your cannabis business, sit back, relax, and enjoy the read. Below is an excerpt from the original article published by StupidDope with insights to help save you from costly tax implications and how to save money through deductions.
In late 2018, the Farm Bill was passed which did many things, but most importantly for our industry it legalized the production of hemp as an agricultural commodity while removing it from the Controlled Substances Act. The federally legal limit of THC in CBD products is 0.3%. A CBD line of products is a great example of having a completely separate business than marijuana products.
Bison Extracts located in Tulsa, OK is one of the many companies implementing this strategy. After a few years of building a rock solid brand and providing a high quality product, in 2021 they decided to launch their CBD line known as Bison Hemp Extracts.
Creating the CBD brand allowed them to deduct any advertising, legal, administrative related salaries or expenses in relation to their CBD business. These are expenses that would typically be lost in a business that only sells marijuana.
We encourage you to get to know our specialized accounting experts at Redbud Advisors because we are pros at navigating the Internal Revenue Code 280E. We get to know your business and individual needs which help us keep your taxes compliant and save you money.