Recreational cannabis businesses operate in a world of conflicting state and federal laws. Several states have legalized recreational cannabis, yet, under federal law, cannabis remains an illegal Schedule I drug under the Controlled Substances Act (CSA).
Tag Archives: Deductions
Dispensary Owner Writes $275,000 Check to IRS
The marijuana industry faces obstacles that other legal businesses do not have to overcome, including federal taxes. Bruce Nassau, a dispensary owner in Colorado, suffered the consequences of not being able to receive tax deductions.
Lawmakers to Introduce 280E Reform
On April 9, 2015, Rep. Earl Blumenauer and Sen. Ron Wyden announced that they will introduce the Small Business Tax Equity Act of 2015 in Congress next week. The purpose of the bill is to amend Section 280E of the Internal Revenue Code.
Marijuana Investor Summit Takes on 280E
Section 280E of the Internal Revenue Code sharply limits the deductions legal marijuana businesses can take against federal income tax liability. It may be the biggest threat to the financial viability of many fledgling cannabusinesses.
Time to Repeal Section 280E
Legal is good. Legal and prosperous is better, as far as investors are concerned. Now that five jurisdictions have opened the door to a recreational marijuana industry, it is time to re-examine the legal structure it takes to support a healthy business climate.