Glossary
Dual-license
An operator holding both medical and adult-use licenses at a premises. Since April 2026, federal guidance asks dual-license operators to separate medical and adult-use activity in operations and recordkeeping.
Why it matters for reconciliation: a dual-license premises sells both medical and adult-use product, and the two are reported under different classes. If a ticket, an inventory record or a cost is not tagged with the right side, the books cannot be separated afterward.
Example: one dispensary rings a patient sale and an adult-use sale from the same shelf. The medical ticket is taxed per the state's medical rules and recorded separately, while its cost of goods is recorded on the medical side. A reconciliation that mixes them produces a variance that is really a classification error.
Where this comes up on budally.com
Related terms
- 280E
Internal Revenue Code §280E disallows ordinary business deductions for businesses trafficking in Schedule I or II controlled substances. Since the April 2026 order, state-licensed medical cannabis is Schedule III and out of 280E; adult-use cannabis remains Schedule I and under it. Cost of goods sold (§471) remains deductible either way.
- Schedule III
The federal controlled-substance schedule that FDA-approved marijuana products and state-licensed medical marijuana were moved to on April 22–23, 2026, removing qualifying medical activity from 280E. Adult-use remains Schedule I.