President Trump's executive order to reclassify cannabis from Schedule I to Schedule III could be a game-changer for cannabis business owners. Unlike most industries, cannabis businesses have long been barred from deducting ordinary operating expenses—resulting in effective federal tax rates as high as 80%. Reclassification could change that entirely, bringing tax rates in line with other lawful businesses and dramatically improving cash flow and profitability.
Opsahl Dawson Tax Manager Diego Rodriguez De La Torre and IBA Senior M&A Intermediary Seth Rudin break down what this change could mean for cannabis operators, capital markets, and the industry's long-term growth.
Read the full article here.
