The U.S. Senate is currently debating the tax reform bill over the next two days. Senator Cory Gardner (R-CO) has introduced an amendment that alleviates the 280E tax penalty which disallows business expenses for cannabis operators. To help this amendment succeed, Senators need to hear from you in support of IRC section 280E tax reform.
Cannabis operators who are selling cannabis, marijuana, edibles and even CBD are exposed to Section 280E of the Internal Revenue Code because cannabis is still federally illegal and a schedule 1 drug under the US Controlled Substance Act. Section IRC 280E states: "No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.”
Simone Cimiluca-Radzine, CPA explains ways to help reduce your 280E exposure in Cannabis Business Minds Podcast www.bit.ly/podcast