280E Limits

On August 10, 2016, the DEA officially rejected calls from the cannabis industry and lawmakers to “de-list” cannabis under the Controlled Substances Act. As such, the sale, cultivation, processing and business of Cannabis remains illegal under federal law and subject to Internal Revenue Code Section 280E. Section 280E limits cannabis business deductions to Cost of Goods Sold. Understanding what expenses qualify as Cost of Goods Sold (under Section 471 and perhaps 263A), managing and capturing these expenses, and properly reporting them can be the difference between a successful cannabis business and one that is defunct.


Nick RichardsAttorney, Adjunct Professor, and former IRS trial attorney, Nick Richards, will explain the impact of Section 280E on the cannabis industry and cannabis business owners. He will discuss actual cannabis business practices and methods to accurately capture the cost of goods sold for these practices. He will take questions from cannabis professionals and business owners regarding their own business practices and concerns with IRS Section 280E. And he will provide the attendees with an understand of Section 280E and some of the tools necessary to manage it in their day-to-day operations.


Register to hear Nick Richard’s present “280E Pitfalls: Tips to Avoid Them.” The webinar is Tues., Sept. 13, Noon MST. (Even if you can’t attend, register anyway to receive a link to the webinar replay.)

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