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280E Tax Strategy

Aggressive but compliant methodology to minimize your tax burden.

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280E Tax Strategy

IRC 280E disallows ordinary business deductions for cannabis operators, so the only defensible way to lower your effective rate is to correctly capitalize costs into COGS. Done wrong, it invites an audit; done right, it can save six or seven figures a year.

We structure your chart of accounts, inventory and cost accounting so every dollar the code allows lands in COGS — and is documented well enough to survive scrutiny.

Why it matters

Maximized COGS

We capture every legal indirect cost the regulations permit.

Audit-Ready Support

Every allocation is backed by contemporaneous documentation.

Questions

Is this legal?

Yes. We only claim positions supported by the tax code and case law — the goal is defensible, not reckless.

How much can we save?

It varies by structure, but clients frequently move their effective rate down by double-digit percentage points.