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- Todd Arkley
CPA Accounting Tax IRC 280E Cannabis Seattle Washington
Todd Arkley, CPA, is the owner of Arkley Accounting Group, a Seattle, WA based accounting firm dedicated to helping small businesses within the cannabis industry grow and thrive. Prior to founding Arkley Accounting Group in January 2014, he served as CFO at the Seattle law firm of Lee Smart, P.S., Inc.
Todd has deeply immersed himself in the cannabis industry’s specific financial issues, such as IRC 280e, banking, and state/local taxes, while also integrating his extensive accounting and operational background developed over the past 15 years working for law firms and private industry. He was written and spoken at length regarding accounting and tax issues surrounding the cannabis industry via the Center for Cannabis and Social Policy, the Center for New Revenue, and Marijuana Venture magazine.
He is a member of both the WSCPA, the AICPA, and also teaches cannabis taxation classes for both CPAs and accounting students.
Arkley Accounting Group
January 2014 - present
Firm Administrator / CFO
Lee Smart, P.S., Inc.
July 2009 - July 2013
Oversaw all business operations, with primary responsibility for finances and accounting, at a 75-employee (37 attorneys) law firm. Supervised HR Director, IT Manager, and two accounting staff. Worked closely with the Board of Directors and Executive Committee to develop and implement sound business practices.
University of Washington
2008 - 2009
Certificate Program in Accounting (Intensive Analysis of Accounting Principles and Practices)
1991 - 1995
BA in American Studies
280E and square feet
The Center for New Revenue
Taxes and Social Policy
The Center for the Study of Cannabis and Social Policy
Great video conversation with Dr. Dominic Corva.
Account management for tax purposes
Tackling the challenge of making your business profitable
Washington State Board of Accountancy (29124)
January 2011 - June 2017
The Cannabis Alliance (Education)
January 2016 - present
The Cannabis Alliance is a non-profit, membership-based association of individuals, businesses, government officials, and non-profit organizations dedicated to the advancement of a sustainable, vital and ethical cannabis industry.
Todd Arkley replied:
The biggest challenge is understanding what can and cannot be deducted on a federal tax return - as well as understanding WHEN those deductions can be taken - due to the severe limitations placed on cannabis companies by IRC 280E. Very simply, this code section limits deductions to production-related expenses for cannabis growers and cannabis processors and it limits deductions to acquisition-relted expenses for cannabisretailers.
Every business decision - entity structure, fixed asset purchases, product/service mix in a store - all need to be filtered through the lens of IRC 280E. It can be planned for and managed, but it creates odd twists to most 'normal' financial decisions a business would make. The reason it needs to be understood well is because it can create a very large chasm between book income and taxable income, necessitating careful tax planning and tax saving throughout the year.
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