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How Cannabis Businesses Can Be Taxing: IRC 280E
Although a marijuana business is illegal under federal law, it remains obligated to pay federal income tax on its taxable income because the law does not differentiate between income derived from legal sources and income derived from illegal sources. Everyone in the space knows at least a little about the unfair burden that cannabis ….
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A Tax Court Case Emphasizes the Importance of Cannabis Record Keeping
We talked about IRC 280E in our last blog which severely limits the cannabis touching entity’s ability to take deductions on their tax return. IRC §280E disallows deductions and credits to any business trafficking a controlled substance with the only exception of being able to deduct cost of goods sold (COGS). Last month there was […]
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