In a rare boost for cannabis from the IRS, the tax agency greenlit cannabis companies to use of Tax Code Section 471 to offset the burden of hated rule 280E.
WeedWeek
- 280E severely limits the expenses cannabis companies can deduct on their taxes. Section 471, which passed in the 2018 tax law, allows businesses with less than $25M in revenue to deduct more of their expenses.
- Until the IRS’s announcement this month, it wasn’t clear whether 471 applied to cannabis businesses.
WeedWeek - The IRS may have been motivated because it missed out on nearly $250B in revenue from improperly deducted expenses.
In another story, WeedWeek‘s terrific new reporter Willis Jacobson looks at the heavy hitting cannabis coalition pushing the U.S. Supreme Court to accelerate legalization.
