Law360 (September 14, 2020, 3:10 PM EDT) — Income from state-legal marijuana businesses must be reported federally and cannot qualify for business deductions and credits, but their gross receipts can be reduced via an alternative accounting method available in the tax code, the IRS said. Although income from marijuana businesses […]
Law360 (September 14, 2020, 3:10 PM EDT) — Income from state-legal marijuana businesses must be reported federally and cannot qualify for business deductions and credits, but their gross receipts can be reduced via an alternative accounting method available in the tax code, the IRS said.
Although income from marijuana businesses doesn’t qualify for deductions and credits under Internal Revenue Code Section 280E, the Internal Revenue Service specified that those businesses can still reduce gross receipts using an alternative accounting method available under Section 471. The IRS’ advisory notice came Saturday in updates to frequently asked questions on the agency’s website.
The IRS issued the informal guidance following an agency watchdog’s report…
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