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Neil Prasad (Courtesy photo)
The cannabis industry has long been shackled by the constraints of Section 280E of the Internal Revenue Code, which prohibits companies dealing with substances classified under Schedules 1 or 2 of the Controlled Substances Act (CSA) from deducting ordinary business expenses.
While Section 280E is applicable to federal deductions, only half of the markets with medical or adult-use marijuana business licenses are decoupled from federal limitations, meaning state-regulated cannabis companies in those regions aren’t subject to 280E rules when filing state taxes.
This provision has stifled the growth of legal marijuana enterprises across the United States.
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But with the Biden administration proposing the
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