Free tool
What Is 280E Actually Costing You?
Estimate the gap between what you would owe as an ordinary business and what you owe as a cannabis business.
Most cannabis operators know 280E is expensive. Fewer know their number. This estimates the gap between what you would owe as an ordinary business and what you owe as a cannabis business — and roughly how much of that gap may be recoverable through better cost allocation.
$126,000
Estimated annual 280E penalty — tax you owe that an ordinary business would not
Tax as an ordinary business—
Tax under 280E—
Potentially recoverable through allocation—
Your effective rate on real profit—
This is an estimate using typical capitalization ranges for your business type. Your actual position depends on your specific cost structure, entity arrangement, and documentation. A thirty-minute conversation with your last return and current P&L will give you a real number.