IRC 280E Payroll Tool

Payroll 280E Deductibility Analyzer

Identify which payroll costs qualify as deductible COGS labor under IRC 280E - and how much you could save on taxes with proper allocation.

Deductible (COGS labor) Non-deductible (280E disallowed) Partially deductible (split)
$
$45,000
Payroll Allocation Breakdown$45,000 total
100%

Total Payroll

$45,000

Deductible

$45,000

Non-Deductible

$0

Partially Deductible

$0

Estimated Tax Savings from Proper Allocation

$13,500

Based on a 30% effective tax rate

Monthly Savings

$1,125

This tool provides general estimates for educational purposes only. Actual 280E deductibility depends on your specific facts, cost accounting method, and IRS interpretation. Partial deductibility percentages are illustrative - proper allocation requires detailed time studies and documentation. Always consult a qualified cannabis CPA for specific tax advice.

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