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. 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.  

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• Read more about the status of cannabis legalization in New Jersey
  
  
• Join the NJCPA Cannabis Interest Group