How to Navigate the Dreaded Tax Code 280E
How is filing taxes possible when cannabis is still federally illegal?
In an article published in Green Entrepreneur, CEO Colton Griffin outlines the implementation of Tax Code 280E and shares his tips on how cannabis businesses can navigate the code come tax season. “When it comes to running a canna-business, one glaring problem persists: the IRS says cannabis businesses are illegal and cannot deduct most expenses when filing taxes, despite being legal at the state level,” explains Griffin. “Adding insult to injury, most banks won’t work with anyone in the industry, whether they are or aren’t plant-touching.”
Here are Griffin's top recommendations for cannabis businesses when it comes to filing taxes:
- Be sure to document everything, particularly your COGS, as discussed in our last post,
- Get good software to help in proper documentation,
- Know what to deduct under Tax Code 280E,
- And don't let human error ruin tax season.
Read the full article here.