In recent times, more than twenty-two states in the US have legalized marijuana. This is because marijuana has some health advantages and it can be used to treat patients suffering or in severe pain. Marijuana is prescribed to patients suffering from certain medical conditions such as Glaucoma, AIDS, and Cancer. Although these states have allowed the sale of marijuana, the drug is illegal under the federal law. Hence, the IRS Code 280E was promulgated to prevent retailers, producers, and processors of marijuana from removing expenses for the earnings. However, the IRS Code 280E is detected in the cannabis industry because it usually makes cannabis business owners determine the expenses that must be included in the cost of the goods sold out which will provide the kind of expenses that can be deducted and those expenses that cannot be deducted.
Furthermore, the problem that the taxpayers have been facing since the promulgation of the section is that there has been little direction on how to determine this. A couple of years ago, details on how this section can be applied were provided which has made it easy to determine the cost of goods sold since then. Lastly, the expenses that can be included are direct labor cost and material cost and indirect costs like repair, maintenance, utilities among others.
If you are wondering how to open a medical cannabis business, then take our cannabis business workshop at California college for cannabis, in San Diego, Pasadena and Sacramento; Our attorneys and industry leading network of professionals will be hosting a to go over all aspects of cannabis business licensing, start-up and operation.
At 420 College – it all begins with helping YOU to understand what is proper, lawful and appropriate!
Our hands on medical cannabis business start-up seminars or one-on-one consultations are perfect way to get started!
You get an intense 2 days of advanced information about how to start and operate a medical cannabis business in California. Find out how 420 College 2 DAY seminars can help you in your business, click here.