Scottsdale-based RCG Valuation has expanded its business advising model to include the marijuana industry.
Through cost segregation, RCG Valuation can consult cannabis growers on how to receive specific tax deductions, according to a press release. A cost segregation study allows commercial real estate owners to use an accelerated depreciation schedule, resulting in higher tax deductions in the early years after purchasing a property.
While many aspects of a marijuana operation don’t qualify for tax deductions, the physical building and manufacturing components does qualify.
Cost segregation studies are not a new concept but RCG Valuation claims its approach to how it gathers the data is unique.
It uses drones and 3D cameras to allow for a significantly shorter reporting time compared to traditional methods. Owners can receive their deductions much more efficiently at a lower cost and without disturbing the growing or storage process.
“Representing cost segregation in the cannabis industry has given us the exciting opportunity to provide these upstanding businesses with the assistance they require to operate at their fullest potential,” Scott Roelofs, owner of RCG Valuation, said in a prepared statement.
“The technology we use has been able to provide a more secure and efficient experience for cannabis executives that cuts the entire production time in more than half.”
A release claims cost segregation is a unique opportunity for the marijuana industry to receive necessary tax breaks because the government has put regulations in place to make obtaining any sort of deduction increasingly challenging. Cost segregation is one of the only opportunities for marijuana companies to receive tax refunds.
RCG Valuation has completed studies on properties in Florida, California, Utah, New Mexico, Colorado, Texas, Missouri, Illinois, Iowa, Michigan, Maine and Arizona. Its headquarters is at 8765 E. Bell Road and a secondary office is in Aventura, Florida.