Marijuana Related Businesses, Tax Deductions, Controlled Substances Act

Court Upholds CSA, but Cannabis Businesses Still Have Deduction Options

Fox Rothschild LLP on 6/13/2025

A recent 1st U.S. Circuit Court of Appeals ruling upheld a lower court decision that the Controlled Substances Act (CSA) does not violate federal law. The decision stems from Canna Provisions’ lawsuit against the government...more

Paid or Incurred: Marijuana Rescheduling, Taxes, and Section 280E

McGlinchey Stafford on 6/6/2024

The cannabis industry knows well the economic burden imposed by Section 280E of the Internal Revenue Code of 1986 (Code). It substantially increases the cost of doing business because it disallows deductions for expenses...more

Marijuana Rescheduling is Here: How DEA’s Decision Will Impact Cannabis Businesses

McGlinchey Stafford on 5/1/2024

After fifty years, the federal government finally acknowledged that marijuana has medical value and is not as dangerous as heroin. As first reported by the Associated Press and confirmed by Marijuana Moment, on April 30,...more

In NYC, Cannabis Business Expenses Now Deductible

Rivkin Radler LLP on 11/21/2023

New York Governor Kathy Hochul signed a bill on Friday, November 20, 2023, that allows New York City cannabis businesses to deduct business expenses paid or incurred in carrying on such business for purposes of determining...more

The Possible Demise of 280E in the World of Cannabis

Bricker Graydon LLP on 10/24/2023

The Internal Revenue Code, 26 U.S. Code §280E, is the bane of any business associated with the “trafficking” of Schedule I or Schedule II controlled substances....more

Massachusetts May “Decouple” From Section 280E

Foley Hoag LLP on 6/17/2022

Section 280E of the Internal Revenue Code provides that no deduction or credit shall be allowed for any amount paid or incurred in carrying on any trade or business if such trade or business consists of trafficking in...more

Section 280E and The Taxation of Cannabis Businesses

Freeman Law on 8/20/2021

Section 280E of the Internal Revenue Code prohibits taxpayers who are engaged in the business of trafficking certain controlled substances (including, most notably, marijuana) from deducting typical business expenses...more

IRS Continues to Audit and Litigate Against Cannabis Businesses

Holland & Knight LLP on 4/23/2021

As Congress continues to deliberate the federal legalization of marijuana, the cannabis industry continues to face scrutiny from the IRS under Section 280E of the Internal Revenue Code (Code). Enacted in 1982 in response to a...more

Section 280E – Why Are We Still Having This Discussion?

Seyfarth Shaw LLP on 1/31/2020

If you are in the cannabis industry, you should already know Section 280E of the Internal Revenue Code. It consists of only one sentence...more

Are Owners of Cannabusinesses Eligible for the Qualified Business Income Deduction Under Section 199A?

Rosenberg Martin Greenberg LLP on 2/28/2019

Section 199A of the Internal Revenue Code, introduced by the Tax Cuts and Jobs Act (“TCJA”), created an opportunity for business owners to substantially lower their income taxes. Subject to many qualifications, beginning in...more

The IRS and the Controlled Substance Act

Foster Garvey PC on 4/15/2017

Two recent District Court cases, High Desert Relief, Inc. v. United States of America and Alpenglow Botanicals, LLC et. al. v. United States of America have raised a novel issue in the IRS’s audits of cannabis businesses....more

A Real Bummer for The Marijuana Industry

Foster Garvey PC on 10/26/2015

As a general rule, in accordance with IRC § 162(a), taxpayers are allowed to deduct, for federal income tax purposes, all of the ordinary and necessary expenses they paid or incurred during the taxable year in carrying on a...more

Marijuana Related Businesses › Tax Deductions › Controlled Substances Act

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