Скачать или смотреть Section 280E: Still the Tax Challenge for Cannabis Entrepreneurs

Section 280E: Still the Tax Challenge for Cannabis Entrepreneurs

For years, cannabis businesses in the U.S. have navigated a unique financial hurdle: Section 280E of the Internal Revenue Code. Crafted during the 1980s' War on Drugs, this code section prevents businesses trafficking in Schedule I and II controlled substances from claiming business deductions. For cannabis businesses, this translates into exorbitant effective tax rates, often eclipsing 70%, stifling potential profitability. The impact is particularly severe for cannabis retailers, where typical deductions for rent, marketing, and wages are denied, in stark contrast to other retail sectors. This legal environment has left many cannabis entrepreneurs in a precarious position, struggling to compete with unlicensed market counterparts. As state legalization expands, the dichotomy between state and federal laws sharpens, with cannabis businesses operating legally under state law while being taxed as if they were not.

#kimandrosadollp #taxlawyer #tax #cannabis #280E