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MARIJUANA TAXATION: NAVIGATING THE HIDDEN TAX OF IRC SECTION 280E

MARIJUANA TAXATION: NAVIGATING THE HIDDEN TAX OF IRC SECTION 280E

MARIJUANA TAXATION: NAVIGATING THE HIDDEN TAX OF IRC SECTION 280E

By Jonathan S. Berck, Esq.

 

Legal adult-use cannabis is taxed at multiple levels. New York, for example, imposes taxes on the THC content of cannabis products ranging from $.005/mg of THC for flower to $.03/mg of THC for edibles, and 13% state and local sales taxes. But a hidden tax lurks for cannabis entrepreneurs: the effect of IRC Section 280E, which restricts the deductions and credits available to cannabis businesses and poses a major economic disincentive. This article discusses strategies for mitigating the effects of Section 280E.  For the full article, click on the link below.

 

https://cdn.cmmr.legal/files/Article on Section 280E.pdf

 

             

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