Pscylicyben Tax Considerations & What Do About Them скачать в хорошем качестве

Pscylicyben Tax Considerations & What Do About Them

Justin Botillier, CEO of Calyx CPA, Katye Maxson-Landis, CPA & Owner of Moxy Accounting, and guests, discuss a tax court case called Californians Helping to Alleviate Med. Problems, Inc. (CHAMPS) v. Commissioner in which the IRS stripped the non profits 501C3 designation and applied IRC 280E to the fullest extent of the known law which means being taxed on Gross Profits (Gross Income less Purchases for Resale) disallowing all SG&A becuase the IRS deemed the organization to be trafficking cannabis. The now for profit C Corporation then took the IRS to tax court to appeal the decision of the IRS, and they won recovering the SG&A for their non cannabis related activities. Katye does an excellent job explaining why as much as we would like to take a liberal view of the CHAMPS case, and take an aggressive approach to deducting SG&A expenses for Service Centers, the tax code makes it clear that 280E applies to businesses that have any "drug trafficking" activities "at all." The IRS can apply 280E to the SG&A expenses of a Pscylicyben company to the fullest extent of the law. The conversation goes on to refine what activities are actually being carried on, if not exclusively the sale and consumption of Pscylicyben. We discussed that although we have to avoid language such as "therapy," when describing the non Pscylicyben activities, there is more that the Service Centers are doing other then just administrating Pscylicyben that can and will likely lead to therapeutic results; Seth argues that the services the Service Centers are providing are "Harm Reduction Services." Katye reiterates that until we have tax court proceedings we will not know if the IRS will consider one or both of the sessions that do and do not include the consumption of Pscylicyben as drug tracking. Until then we determined that best practice would be to be very careful to track time and facility footage, to include areas which are & are not used exclusively for the sale of Pscylicyben. The areas of the facility that are & are not used for sessions in which Pscylicyben is consumed, & the amount of time an area of the facility was & was not used for sessions in which Pscylicyben was & was not consumed. Finally the amount of time an employee or independent contractor is paid for sessions in which consumption of Pscylicyben was & was not consumed. We determined that there is already a lot of language in the State laws that require Service Centers to track these metrics. Katye introduces IRC 471 which relates to how a company values its inventory and calculates Cost of Good Sold. There is also language included in the 471 Code that allows a taxpayer to either follow the rules of the code or to be in conformity with the industry's standard practices. We go on to discuss 471C, which allows for small businesses (those with under $25 Million in Gross Revenue), to base their inventory methodology on their books and records, and to capitalize/deduct expenses to inventory and/or Cost of Goods Sold. The methodology would be implemented and maintained at the company's discretion.