Ep. 57: Cannabis Real Estate and 280E Tax Liabilities: Is Leasing Property to Cannabis Companies Risk-Free?

Cannabis is complex enough with the usual day-to-day questions and issues accounting professionals run into. When you add clients wanting to lease or buy land into the equation and try to apply 280E, it may feel like any misstep could lead to detonating a litigious minefield. Not understanding how 280E relates to leasing or buying real estate in Cannabis could lead to some explosive penalties and consequences. To get a clearer understanding of how leasing out property relates to 280E, listen into our latest podcast, “Cannabis Real Estate and 280E Tax Liabilities: Is Leasing Property to Cannabis Companies Risk-Free?” Understanding the pros and cons of leasing property to businesses in the space will help you make a better informed decision to add value to your clients. Key points you’ll learn about in this podcast include: 📍How 280E can apply and in which circumstances: although there’s never one answer, 280E always applies to Cannabis companies and owners, but might not apply to strictly non-Cannabis assets (for example, a landlord or company might be able to keep assets “safe” from a Cannabis company declaring bankruptcy by creating a separate non-Cannabis LLC, but this doesn’t necessarily mean the owner will be able to lower or reduce 280E tax liabilities, especially if there’s common ownership of assets within the Cannabis company). 📍Possible complications with leasing accounting: we’ll discuss some complications accounting professionals may encounter helping landlords and land owners (and why lease accounting issues can require high-level services from specialized accountants that involve analyzing the accounting, tax, and cash flow implications tied to the owner’s assets). 📍Tools to determine the buy or lease debate: there are tools to ease the headache of determining the risks of leasing assets, such as buy versus lease calculator (and you’ll learn how to locate these tools that can look at cash flow effects and forecast any tax implications to make better decisions for your clients). Want more great tips and insider advice on the Cannabis and CBD/hemp accounting niches? For more info on the DOPE CFO program, text DOPECFO to 345345 for our free Cannabis Accounting Guide. For more great tips and soundbites on Cannabis accounting and bookkeeping, make sure you subscribe today to our podcast.