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Interesting New Tax Court Decision on Section 280E

Jan. 23, 2019—[Updated 1/24/19 to elaborate a bit on my two observations] Happy (belated) new year! Back in late November 2018, the United States Tax Court issued a noteworthy decision in a tax proceeding against Harborside Health Center, one of the nation’s largest (if not THE) largest state licensed marijuana suppliers. The full decision in Patients Mutual...

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The Corporate Tax Cut Might Have Done More for Marijuana Suppliers than Repealing Section 280E Would Have

Feb. 16, 2018—As most readers will know, state licensed marijuana businesses pay a comparatively high effective federal tax rate, because a special provision of the federal tax code (section 280E) bars them from deducting all but their cost of goods sold (COGS) when calculating their federal tax liability. In other words, these businesses may not deduct their...

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