business code for marijuana manufacturing

Forum|Forum|5 years ago
August 25, 2021
3 replies
37 views

My company is engaged in marijuana manufacturing. What activity code should I use in turbo tax? Is there any form I need to use for this business other than the forms used for normal business. I know under 280E, all expenses are non deductible. Should I still enter the expenses in deduction? or just skip it. However, expenses are deductible in my state, should I enter all expenses just on state return?

thank you

Lynn

Anonymous_

Level 15

There is a discussion on this topic here --> https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-medical-marijuana-grower-business-code-in-oklahoma/01/1730979/highlight/true

rjs

Level 15

Since there is no code specifically for marijuana manufacturing, I suggest using code 339900, Other Miscellaneous Manufacturing, for your manufacturing business. (I assume that you truly mean manufacturing, not growing, which would be farming.)

Is your business a sole proprietorship, single-member LLC, multi-member LLC, partnership, S corp, or C corp? Are you asking about your personal Form 1040 tax return or a Form 1065, 1120, or 1120-S?

Apple75Author

Level 2

My business is C-corp, I am filing for 1120. IRS code 280E strictly disallow any expenses except COGS deductible. What kind of costs should be capitalized and goes to COGS?

Thank you!