Well value a learn . right here’s how they introduce the piece..
With the emergence of state-sanctioned marijuana companies over the final 10 years, the software of § 280E has left many marijuana companies with tax liabilities that don’t precisely replicate the earnings, or “gain in wealth realized”, they’re producing. Recently, a marijuana enterprise, Harborside Health Center, which was hit with an $11 million tax legal responsibility by the U.S Tax Court, has challenged the constitutionality of § 280E, arguing that it violates the 16th Amendment’s reliance on “income”. Patients Mut. Assistance Collective Corp. v. Commissioner, Nos. 29212-11, 30851-12, 14776-14, 2018 Tax Ct. Memo LEXIS 211 (T.C. Dec. 20, 2018). The enterprise maintains that § 280E improperly categorizes all monies generated by the enterprise as earnings relatively than extra appropriately distinguishing these monies from “gain in wealth realized”. Harborside Health Center’s enchantment will probably be heard in the Ninth Circuit, however stays unscheduled thus far. Patients Mut. Assistance Collective Corp. v. Commissioner, 19-73078. Per the transient that has been submitted by the appellant, the premise of their argument is that, “[b]y blocking a marijuana business from taking any deductions related to their expenses, § 280E is improperly classifying all money that passes through the business as income”. The National Cannabis Industry Association and the Marijuana Industry Group have filed amicus briefs echoing the appellant’s 16th Amendment problem to § 280E.
Read the full article at. https://www.natlawreview.com/article/tax-woes-cannabis-plant