Larry Brant, Attorney at Garvey Schubert Barer

Larry Brant, who works in the Portland office of Garvey Schubert Barer, a law firm based out of the Pacific Northwest, examined a recent case involving Canna Care, Inc., a California-based medical marijuana collective that was hit with a huge tax bill related to Provision 280E, an antiquated law that is currently being used to attack legitimate cannabis operators.  280E can push the marginal tax-rate up to 80%, as it prohibits the deduction of normal operating expenses.  The U.S. Tax Court ruled in favor of the IRS.

The facts of this case are interesting.  Bryan and Lanette Davies, facing significant financial setbacks and hefty educational costs for their six (6) children, turned to faith for a solution.  After “much prayer,” Mr. Davies concluded that God wanted him to start a medical marijuana business. 

Unfortunately, it does not appear that he consulted with God or a qualified tax advisor about the tax implications of this new business before he and his wife embarked upon the activity.

Brant suggests, wisely, that cannabis industry operators understand the tax laws.

Read “A Real Bummer for The Marijuana Industry”:  http://www.larrystaxlaw.com/2015/10/a-real-bummer-for-the-marijuana-industry/

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