Like many tax professionals, we were drug (pun intended) into this area of the tax law. Many of our existing tax clients invested in various marijuana businesses, and we needed to quickly learn the nuances of this part of the 4-million word collection of the US tax statutes and IRS regulations.

Our initial impressions of what we found included:

  • This stuff is way too complicated for Aunt Becky, the part-time bookkeeper[1][1]
  • A good CPA and a tax lawyer are your new best friends
  • We are going to need a big box of sharp pencils
  • If you don’t document it, it didn’t happen
  • This is an OCD Accountant’s dream job
  • The devil is in the details
  • Pigs get fed. Hogs get slaughtered

  1. Lori Loughlin played the fictional character of Aunt Becky in the ABC sitcom Full House. In the 1993 episode entitled "Be True to Your Preschool", Loughlin's character wrestled with the dilemma of honestly completing the application for a prestigious preschool. On February 25, 2018, Mrs. Loughlin tweeted, "There are more important things than money. Like doing the right thing. Words to live by." The following month, the FBI announced their college admissions bribery scandal nicknamed Operation Varsity Blues. Mrs. Loughlin and her husband allegedly paid bribes totaling $500,000 to help their children get admitted to the University of Southern California. Instead of accepting a plea bargain, they decided to "Fight On!"

License

QuickStart Guide to Accounting for Cost of Goods Sold Copyright © 2019 by reecejr1 and Reece B. Morrel, Jr. JD MBA CPA CGMA AEP®. All Rights Reserved.

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