Cannabis practice, licensed operators nationwide

Rescheduling changed the rules. Not for every license.

Medical, adult-use and dual-license operators now face different federal tax treatment. I build books for the rules that apply to your license, and work alongside your tax preparer.

Book a 20 minute call See the 280E Transition Review

Where things stand

  • Medical, state licensedMoved to Schedule III in April 2026. Section 280E no longer applies to qualifying medical activity. IRS transition guidance is still pending.
  • Adult-useStill Schedule I, so 280E applies in full. The DEA proceeding on broader rescheduling was paused on September 29, 2026.
  • Dual licenseShared costs have to be split between medical and adult-use activity. Treasury's allocation rules are still pending.

Status as of October 7, 2026. This is general information, not tax or legal advice.

By license type

Three operators, three different plans.

Medical only

Capture what you can now deduct.

  • Rebuild the close for ordinary deductibility
  • 2026 transition-year workpapers for your preparer
  • A readiness file in case retroactive relief is allowed

Recommended: 280E Transition Review, starting at $3,500

Adult-use

280E still applies. Every COGS dollar counts.

  • Inventory costing under IRC Section 471
  • Monthly seed-to-sale tie-out
  • A readiness plan if adult-use is rescheduled

Recommended: Cannabis Essentials, starting at $2,000 per month

Dual license

The hardest position, with the least guidance.

  • Revenue, inventory and expense segregation
  • A written allocation methodology for shared costs
  • Quarterly planning with your tax preparer

Recommended: 280E Transition Review, starting at $6,500

280E Transition Review

Know where you stand before your preparer asks.

A fixed-fee review of how rescheduling affects your business. I confirm which of your activity qualifies as state-licensed medical, assess whether your books separate it cleanly, and deliver workpapers and a written methodology your tax preparer can rely on.

  • Medical onlyfrom $3,500
  • Dual licenseIncludes a cost allocation methodologyfrom $6,500

Deliverables

  • License and activity review
  • Segregation assessment of revenue, inventory and expenses
  • Written cost allocation methodology (dual license)
  • 2026 transition-year workpapers
  • A readiness file for any retroactive relief Treasury allows

Monthly packages

Built for inventory, seed-to-sale and 280E.

Tax returns are prepared by your tax preparer, or added for monthly clients on request.

Cannabis Essentials

One license, one location.

Starting at$2,000per month
  • Bookkeeping and a 280E-aware chart of accounts
  • COGS tracking under IRC Section 471
  • Monthly seed-to-sale tie-out
  • Close within 15 business days
  • Tax-ready package and 280E workpapers
Book a call

Cannabis Growth

Multiple licenses, vertical integration, or dual medical and adult-use.

Starting at$4,000per month
  • Everything in Essentials
  • Inventory costing
  • Medical and adult-use segregation
  • Cost allocation memo kept current
  • Quarterly planning call with your preparer
Book a call

Cannabis Controller

Multi-entity and multi-state operators.

Starting at$9,500per month
  • Everything in Growth
  • Intercompany accounting and consolidation
  • 13-week cash flow forecast
  • Lender and investor reporting
  • Close calendar and controls
Book a call

Project services

Fixed fees for specific problems.

  • Chart of accounts design and QuickBooks build$2,500
  • COGS and inventory costing methodologyWith written memofrom $4,000
  • Seed-to-sale reconciliation, one timefrom $3,000
  • License application financialsfrom $5,000
  • Cannabis diagnosticCredited toward a cleanup. Cleanups start at $7,500.from $2,500
  • Business tax return, for monthly clientsPlus $1,000 per statefrom $4,500
  • Team training session$750
  • Examination supportWorkpapers and substantiation alongside your representative$350 / hr

Not sure which rules apply to you?

Start with a 20 minute call. Training other accountants? The Cannabis Accounting Academy is now enrolling.

Book a call