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LivWell CEO, John Lord joins the Cannabist editor-in-chief Ricardo Baca on The Cannabist Show to explain 280E, an IRS tax code that is causing plenty of consternation in the cannabis industry.
What is 280E? IRS code 280E – 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.
In other words, 280E is intended to have drug dealers declare their ill-gotten gains, does not allow marijuana businesses legally operating in Colorado to take deductions or receive credits.
Read more from the Cannabist article: http://www.thecannabist.co/2016/07/06/behemoth-legal-weed-explains-irs-unfairly-taxes-marijuana-industry/57502/