About This Course
This CLE course provides a comprehensive overview of federal income tax challenges for businesses operating in state-regulated cannabis industries. While some states permit the cultivation, manufacture, and sale of cannabis, federal law classifies cannabis as a Schedule I controlled substance, which remains illegal. As a result, Section 280E of the Internal Revenue Code prohibits income tax deductions for businesses involved in trafficking Schedule I substances.
This course will cover the types of activities and expenses that are non-deductible under these regulations. Key topics include: defining "trafficking" for tax purposes; distinguishing between deductible expenses and capital investments; reviewing relevant case law interpreting Section 280E; and exploring the potential tax implications of federal cannabis rescheduling.
