A marijuana business, including microbusinesses, must follow Internal Revenue Code §280E. This means they are not able to deduct expenses for federal income taxes, except for their cost of goods sold. Cost of goods are the costs that go into inventory. Once the inventory is sold, the cost of it may be deducted. However other expenses, such as bud tender wages, are not currently deductible for federal tax purposes. Our accounting professionals can help determine methods for reducing your business’s exposure to this limitation.