Cost of Goods Sold (COGS)

COGS refers to the direct costs attributable to the production of cannabis products sold by a business.

Cost of Goods Sold (COGS) includes expenses directly related to the production of cannabis products, such as raw materials, labor for production, and overhead costs for facilities where production occurs. For cannabis businesses, maximizing COGS deductions is essential to offset the limitations imposed by Section 280E, as these are among the few deductions permitted under current federal tax law.

Happy Distru Operators

400+

With over a 99% customer support satisfaction rating!

Average CS Response Time

5 min

For normal business hours, longer for you night owls!

Hours Saved

2,000+

Per Operator - and that's just this year!