Harborside Health Center – 151 T.C. No. 11 – Patients Mutual Assistance Collective Corporation d.b.a. Harborside Health Center v. Commissioner of Internal Revenue
In analyzing whether Harborside’s activities are separate trades or businesses for purposes of 280E, the court distinguishes Harborside’s business activities from CHAMP and concludes that such activities had a close and inseparable organizational and economic relationship with the primary business of selling marijuana.
We also find that the sale of items that are about marijuana, are branded with Harborside’s logo, or enable use of marijuana is not “substantially different” from the sale of marijuana itself.
CHAMP v. Commissioner – 128 TC 173 – Californians Helping to Alleviate Medical Problems Inc. v. Commissioner
We hold that section 280E does not preclude petitioner from deducting expenses attributable to a trade or business other than that of illegal trafficking in controlled substances simply because petitioner also is involved in the trafficking in a controlled substance.
Martin Olive v. Commissioner – 139 TC No. 2 – Martin Olive v. Commissioner of Internal Revenue
The record establishes that the Vapor Room is not the same type of operation as the medical marijuana dispensary in CHAMP that we found to have two businesses. The differences between the operations are almost too numerous to list.
(but, fortunately, the court does list the differences between the taxpayer and CHAMP)
Green Solution Retail v. US – No 19-1214, No. 19-1215 – The Green Solution Retail Inc., v. United States of America
Alpenglow Botanicals v. US – No 17-1223 – Alpenglow Botanicals, LLC, v. United States of America
It is within the IRS’ statutory authority to determine, as a matter of civil tax law, whether taxpayers have trafficked in controlled substances.
Alternative Health Care Advocates v. Commissioner – 151 TC No. 13 – Alternative Health Care Advocates v. Commissioner of Internal Revenue
Canna Care v. Commissioner – T.C. Memo 2015-206 – Canna Care Inc., A California Not-For-Profit Corporation
The application of section 280E rests on the presence of three key elements: (1) trade or business, (2) trafficking, and (3) a controlled substance.