tax, 280E, cannabis, COGS, guidance, advisory, retailer, manufacturer, cultivator, effective tax rate,In December, ELLO Tax Partners Dana Borys and Jan Rosati were guests of Cannabis Business Times and led a webinar discussing the current state of IRC 280E tax laws in the US. Over the course of their hour-long presentation, and the Q&A that followed, Borys and Rosati laid out the fundamentals of 280E; discussed common mistakes cultivators, manufacturers and retailers make; provided best practices for cannabis business operators; and discussed specific details of cannabis tax reporting raised by the audience.

Topics discussed include:

  • History of 280E
  • Mechanics of 280E
  • The impact of 280E on a cannabis company’s effective tax rate
  • Mistakes made when navigating 280E
  • Distinctions between direct and indirect costs
  • Determining deductions related to Cost of Goods Sold (COGS)
  • How entity structure can lessen the impact of 280E
  • Strategies for separating lines of business
  • Benefits of a 280E analysis
  • Other viable tax deductions to focus on

View the full webinar here.