The recent Tenth Circuit decision of Feinberg v. Commissioner of Internal Revenue reminds cannabis businesses that as long as marijuana remains a Schedule I controlled substance under federal law, they will not be permitted to take deductions for business expenses.  However, these businesses may still reduce their gross income by their cost of goods sold (COGS). » Read More

The presence of legalized medical marijuana has not only been increasing throughout New Jersey, but nationwide, and it appears this trend will continue. Currently, medical marijuana is not covered under health insurance plans in the U.S. and it is likely to remain that way if it remains a Schedule I drug.» Read More

A “Farm to Flame” cannabis operation in Colorado has asked a U.S. Court of Appeals to preclude the Internal Revenue Service (IRS) from disallowing income tax deductions for certain business expenses incurred by marijuana companies. The IRS had previously concluded that these business expenses were not deductible as they were incurred in business operations that violate federal law.» Read More