Clear explanations of IRC Section 280E, COGS calculation, and compliance requirements — written for operators, not accountants.
Federal rescheduling from Schedule I to Schedule III would eliminate IRC 280E entirely. Here's the current status, what it means for your taxes, and what to do right now.
A detailed walkthrough of how dispensaries, cultivators, and processors should calculate Cost of Goods Sold to maximize their 280E deduction — with worked examples.
IRC Section 280E is one of the most consequential tax provisions for any cannabis business. This guide explains what it is, why it exists, and exactly how it affects your bottom line.
Cost of Goods Sold is the only deduction IRC 280E allows cannabis businesses. Learn exactly what counts as COGS, how to calculate it, and how to maximize your deductible allocation.
A practical checklist of the systems, documentation, and processes every cannabis business needs to stay 280E compliant and survive an IRS audit.
More guides on navigating cannabis tax compliance
Cannabis accounting for dispensaries is not normal retail accounting. Learn the 280E-driven chart of accounts, monthly close cadence, allocation pitfalls, and excise stacking specific to dispensaries.
Which inventory costing methods the IRS actually permits under §471, what counts as cannabis COGS vs. a §162 deduction, and the seven COGS calculation errors that consistently trigger IRS adjustment.
State-by-state breakdown of cannabis excise rates, how stacking interacts with 280E COGS, and where multi-state operators quietly lose money on underpayment penalties and cash-flow float.
280E blocks ordinary business deductions — but the COGS exception is your biggest lever. Learn what's deductible, what isn't, and how to document it correctly by business type.
Cannabis businesses are audited at elevated rates. Learn the specific 280E audit red flags the IRS looks for, the documentation that defends you, and what to do if you're audited.
Federal 280E applies everywhere, but state-level treatment varies. Here's how to handle nexus, apportionment, cost allocation, and state-level deductions across your multi-state footprint.