Tax Issues Surrounding Cannabis Legalization
Even though legislation to legalize adult-use cannabis in New Jersey has stalled, there is still a vital tax issue that needs to be resolved. It is crucial that the state decouples from the federal law governing cannabis — Internal Revenue Code 280(E) — so that cannabis business owners will be able to deduct ordinary and necessary expenses in the same manner as their non-cannabis counterparts. New Jersey Society of CPAs (NJCPA) member Melissa Dardani, CPA, discusses why 280(E) was created, the impact if New Jersey does not decouple from it, how this issue has been handled in other states and how New Jersey is planning to tax cannabis.
The IssuesWatch Podcast is a bi-weekly program published by the NJCPA and hosted by Jeff Kaszerman, NJCPA government relations vice president. It covers the latest New Jersey policy and political issues – because you need to know both. The focus is on business and economic issues impacting the business community and all New Jerseyans.
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# # #The New Jersey Society of Certified Public Accountants, with more than 14,500 members, represents the interests of the accounting profession and advances the financial well-being of the people of New Jersey. The NJCPA plays a leadership role in supporting the profession by providing members with educational resources, access to shared knowledge and a continuing effort to create and expand professional opportunities.