U.S. Tax Code § 280E
How can we help increase the profitability of your business?
Did you know that the cannabis industry is one of the most heavily taxed industries in the US due to Internal Revenue Code section 280e?
What is 280e?
280e is a tax code section that states:
No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business in conducted.
Cannabis still remains a schedule I drug within the CSA, therefore, IRC section 280e applies to your cannabis business.
But, we can help minimize the impact of this tax burden by using established and tested accounting practices.
Did you know that: