Tax And Cannabis

Ordinarily, I would not post on this blog information concerning professional presentations that I make. However, yesterday I gave a presentation entitled “Can You Get There From Here? Federal Taxation and Cannabis.” I thought that, given the focus on cannabis issues on this blog, links to the presentation would be in order.

My underlying thesis is that, due to IRC § 280E, the ability to make money by producing or selling cannabis is limited. Of course, that would no longer be the case if IRC § 280E is repealed or cannabis is no longer classified as a Schedule I or II controlled substance, thus taking the cannabis business out of Section 280E.

A copy of the outline can be found here. A copy with all of the source authority can be found here.

2 thoughts on “Tax And Cannabis”

  1. Sounds like the IRS gets to decide that you are a criminal even though you are never charged with a crime. Where is the due process in this?

  2. The rules do seem to give an unfair advantage to businesses that specialize in something other than marijuana sales, although I imagine even they cannot deduct the cost of the marijuana they buy wholesale, or of the wages and benefits of at least some of their marijuana sales personnel, which has to be a major portion of their costs.

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