Farm income averaging, commodity and conservation payments, and equipment; section 280E for cannabis businesses; and inventory, UNICAP, research credits, and equipment for manufacturers.
33 guides, each written by a CPA licensed in the US and Canada.
Under 280E, cost of goods sold is the only offset a cannabis business gets. What the IRS lets into COGS under section 471, what stays out, and how to document it.
US TaxIRC 280E blocks most cannabis deductions, making entity selection (LLC, S-corp, or C-corp) a higher-stakes decision than usual.
US TaxCannabis businesses face elevated IRS audit risk from the combination of cash-intensive operations, 280E complexity, and limited banking access.
US TaxCannabis businesses can deduct payroll tied to production under 280E, but not general admin wages. The line between the two matters.
US TaxHow IRC 280E affects leasing vs. owning a cannabis facility, and why a separate real estate holding company can preserve deductions.
US TaxState tax treatment of cannabis businesses varies dramatically. Some states conform to IRC 280E and deny deductions at the state level, doubling the pain.
US TaxIRC 280E denies all ordinary business deductions for cannabis businesses trafficking in Schedule I substances. The only offset is cost of goods sold.
US TaxHow farmers report commodity hedges: an identified hedge under IRC 1221(a)(7) is ordinary gain or loss on Schedule F, while other futures are Section 1256 contracts on Form 6781.
US TaxA qualified conservation contribution under IRC 170(h) allows a farmer to deduct the value of development rights permanently given up on farmland.
US TaxManufacturing plants contain specialized electrical, HVAC, flooring, cranes, and pollution control equipment that can be reclassified from 39-year to 5.
US TaxHow crop insurance indemnities and USDA disaster payments are taxed, and how the IRC 451(f) deferral election lets cash-basis farmers postpone the income.
US TaxHow to choose the right entity structure for a manufacturing business, comparing C-Corp retained earnings, S-Corp QBI deduction, LLC flexibility.
US TaxThe right entity structure for a farm depends on the owner's goals: self-employment tax reduction, liability protection, succession planning.
US TaxFarmers can expense up to $2,500,000 under Section 179 for 2025 or take 100% bonus depreciation. New farm machinery is 5-year property. General-purpose barns don't qualify for 179.
US TaxHow IRC 2032A special use valuation and IRC 6166 installment payments keep the family farm intact through estate tax planning.
US TaxHow IRC 183 hobby loss rules apply to farming operations, the 3-of-5-year presumption (2 of 7 for horses), the nine-factor profit motive test.
US TaxHow IRC 1301 farm income averaging lets farmers spread a high-income year over three prior years to reduce the marginal tax rate, with worked examples.
US TaxHow farm drainage tile, irrigation, land clearing, lime, and soil conservation costs are treated: IRC 175 and 180 deductions, 15-year depreciation, bonus, and land basis.
US TaxSeed, feed, fertilizer, chemicals, fuel, repairs, hired labor, insurance, vet bills and custom hire are deductible on Schedule F. Plus the 50% prepaid supplies rule.
US TaxUS manufacturers who export can cut their effective tax rate with an IC-DISC or the FDII deduction. Transfer pricing rules for related-party sales.
US TaxManufacturers can expense equipment up to $2,560,000 under Section 179 or use bonus depreciation. MACRS classes for heavy machinery explained.
US TaxHow UNICAP rules under IRC 263A force manufacturers to capitalize direct and indirect costs into inventory, the simplified production method.
US TaxSales and use tax is a state-level concern, but for manufacturers it is one of the largest and most audit-prone areas of state tax compliance.
US TaxA complete guide to tax deductions for manufacturers, including raw materials, labor, equipment, UNICAP capitalization rules under IRC 263A.
US TaxTax credits available to farmers for solar panels, wind turbines, biofuel production, and other renewable energy investments under the IRA and current law.
US TaxFarm owners can shelter significant income through retirement plans. The three most common retirement plans for farm owners are the SEP IRA (contributions.
US TaxManufacturing businesses with highly compensated owners and lower-paid production workers need a retirement plan that maximizes owner contributions while.
US TaxHow to report farm income and deduct ordinary and necessary expenses on Schedule F, including the cash vs accrual method choice and prepaid supply rules.
US TaxFarmers pay self-employment tax on Schedule F net profit, but they have access to special rules that other self-employed taxpayers.
US TaxAncillary cannabis businesses are not subject to IRC 280E. Learn how consulting firms, equipment suppliers, landlords. Ancillary cannabis businesses.
US Tax- Raised livestock has a zero basis. All costs (feed, vet, labor) were deducted on Schedule F as incurred, so there is nothing left to capitalize.
US TaxHow manufacturers qualify for the R&D tax credit under IRC 41, the four-part test, qualified research expenses. - The R&D tax credit under IRC 41.
US TaxWorkers' comp premiums, OSHA compliance costs, safety equipment, and self-insured reserves are all deductible for manufacturers.