However, there is a cumbersome issue that bothers every cannabis entrepreneur in the country, regardless of their state’s laws. This issue revolves around Section 280E, Tax code. This tax law has made running a canna business very hard for people who have no idea how to navigate around it. The IRS claims that all canna-businesses are illegitimate at the federal level, even though some states have legitimized it. Hence these businesses are unable to subtract most incurred expenses when filing their taxes except the cost of the products sold.
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