U.S. Code Section 280 E is the federal statute that states that a business engaging in the trafficking of a Schedule I or II controlled substance (cannabis!) is barred from taking tax deductions or credits. While this tax law has been enacted in the Past Against Marijuana Business's. We can also use it against them and fight the IRS. Basically, cannabis entrepreneurs must pay taxes on all revenue without the benefit of being able to reduce their taxable income by writing off business expenses.
In This Blog we are going to explore ways to overcome this Tax Law with tried and true, Smart Accounting and Business Practices. Subscribe to get more insight on the subject!