The historic DEA marijuana rescheduling hearings are over and there’s no outcome yet. But there’s much cannabis operators should do now.
The U.S. Drug Enforcement Administration’s historic marijuana rescheduling hearings are now over, but adult-use cannabis operators are still waiting for the results.
Though the exact path forward is uncertain, operators can take concrete actions – and should do so promptly, as benefits decrease over time.
What does cannabis rescheduling mean for legal operators now?
Schedule 3 made two big and immediate changes for qualifying medical operators.
The first is the end of Internal Revenue Code Section 280E, which bars anyone engaging in the sale or manufacture of Schedule 1 and 2 drugs from deducting ordinary expenses on their federal tax returns.
While Acting Attorney General Todd Blanche’s order also encouraged further, still-pending guidance from the Treasury, it’s generally understood that 280E no longer applies to medical operators. They can now deduct ordinary expenses — often the difference between profitability and running at a loss.
The second change is DEA registration. While not yet required except in Oklahoma, state medical-license holders may register with the DEA.
Many did so before a sixty-day window for expedited registration ended June 26. The DEA has begun inspecting some operators, with recent site visits at retailers in Virginia, MJBizDaily has learned.
We believe those who registered are considered federally legal, pending the processing of their DEA applications. Operators that did not apply should talk to attorneys now, mindful that DEA may visit.
Read the full article at MJBizDaily
