Cannabis businesses can only deduct the cost of goods sold (COGS) from gross receipts under IRC 280E. Recently COGS for cannabis companies has been limited by case law to COGS calculated using IRC Sec. 471 and the regulations thereunder. Attempts to use the more favorable allocation method allowed under IRC Sec. 263A have been struck down by the tax court.

The Tax Cuts and Jobs Acts Eliminates the Tax Deduction for Spousal Support Beginning January 1, 2019, except for support Orders effective by December 31, 2018. For decades the Internal Revenue Code and the California Revenue and Taxation Code have allowed an income tax deduction to payors of “Spousal Support”. The recipient ex-spouse was required … Continue reading The Tax