Cannabis Term
COGS
A common industry acronym for “cost of goods sold.” Cf. I.R.C. § 280E.
Search Results for 280E
Canna Law Blog
Here We Go! The Latest Lawsuits to End Federal Prohibition
High profile lawsuits to end cannabis prohibition are nothing new. We’ve covered efforts going back several years, though none of these has succeeded. A recently announced attempt, though, may be the best chance yet– especially given the changing environment with cannabis legalization in so many states; and especially given Constitutional jurisprudence relevant to those changes.
Canna Law Blog
How Cannabis Businesses Succeed
We work with many large cannabis businesses and many small ones too. It’s fun to talk up the bigger fish, but I have a soft spot for the little guys. I really enjoy small business at the end of the day. I like seeing financial statements of disciplined, privately held companies doing maybe $5m to
Canna Law Blog
Cannabis Ponzi Schemes
Investors in marijuana businesses face many risks. To name just a few: the subject of their investment is illegal under federal law; the businesses in which they are investing face heavy tax burdens because of IRC 280e; and the lack of access to banking services means businesses operate nearly exclusively cash, which makes tracking sales,
Canna Law Blog
Ten Recommendations for State Cannabis Regulation
Unfazed by the federal leadership vacuum on cannabis, states continue to roll out cannabis proposals and programs. A total of 34 states considered cannabis reform proposals in 2021. Another 32 proposals (some of them pre-filed in 2021) are up for discussion here in 2022. These proposals range from limited decriminalization measures to comprehensive, adult use
Canna Law Blog
New York’s New Cannabis Tax Deductions
New York snuck a pretty significant tax break for cannabis businesses into its 2022 budget. The Revenue Bill included a state tax deduction for cannabis related business expenses that are currently disallowed by § 280E of the federal tax code. We have seen this strategy in other “canna friendly” states and it’s a welcome development.
Psychedelics Law Blog
Washington State: Outlook for Psychedelics
The outlook for psychedelics legalization in Washington State, and specifically psilocybin legalization, looks promising and continues to evolve at a rapid pace. The Spokane Bar Association recently held a seminar on emerging issues in the Washington psychedelic ecosystem. In October, Seattle became the largest in the United States to decriminalize psychedelics. As the second largest
Glossary Term
I.R.C. § 280E
A federal law that prohibits tax deductions or credits on a trade or business relating to the trafficking of substances on Schedule I or Schedule II of the Controlled Substances Act. Judicial decisions have allowed deductions only for the cost of goods sold, or deductions tied to a “separate trade or business.”
Canna Law Blog
Cannabis Purchase Order Financing
Cannabis purchase order financing is gaining speed in the industry. Because of robust state regulation, high operational costs, high taxes, and the federal illegality of marijuana, a lot of cannabis businesses struggle financially in their day to day business operations. Approaches to this problem takes various shapes and forms across the industry. There are threats
Canna Law Blog
Ten “Must Haves” for Cannabis Businesses in 2022
I started as a lawyer in the cannabis industry in 2010. Twelve years in there has been immense progress and maturation at the business level for cannabis licensees. This post is dedicated to the top ten list of which arrows all cannabis companies, regardless of state, size, culture, or market share, must have in their