TCNNF - Finally Tax Refunds! These Cannabis Companies Will Get The Most Money Back If Rescheduling Happens | Benzinga
Significant tax benefits are anticipated for the cannabis industry, following President Joe Biden's confirmation of the administration's intent to reschedule cannabis from Schedule I to Schedule III. This move could alleviate the burdens of IRS tax code 280e, which has prevented cannabis companies from deducting normal business expenses. Which cannabis companies will benefit the most?
Leading The Pack In Tax Payments
Rescheduling cannabis will eliminate the burdensome 280E tax code, potentially freeing up over a billion dollars in tax breaks for the industry. Among the companies poised to benefit the most are Curaleaf (OTC: CURLF) and Trulieve (OTC: TCNNF), given their significant tax contributions.
According to Pablo Zuanic, a senior analyst from Zuanic & Associates, these tax savings could lead to enhanced cash flows, enabling these companies to reinvest in growth and expansion.
Zuanic has consistently highlighted the disparity between current market valuations and the potential upside, particularly if federal legalization occurs. He emphasizes that immediate cash flow improvements could lead to substantial revaluation of these companies. By enabling the deduction of ordinary business expenses, the financial statements of these companies would more accurately reflect their true profitability.
Curaleaf's Financial Landscape
Beacon Securities' Russell Stanley notes that Curaleaf's operating cash flow management, which facilitated a ...