IRS Sweetens The Pot With New Marijuana Industry Web Page

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The Internal Revenue Service (IRS) has released a new marijuana business webpage to help business owners understand and meet their tax responsibilities

But spoiler alert: the sale of marijuana outside of state compliant marijuana dispensaries is also taxable.If you follow tax and legal developments in this area, you’re already thinking, “But what about section 280E?”Expenditures in connection with the illegal sale of drugs.

It’s the gold standard in drug tax laws. As such, on the new webpage, the IRS reminds “businesses that traffic marijuana in contravention of federal or state law” that they are subject to the limitations of Internal Revenue Code Section 280E. Words like “traffic” and “in contravention of federal or state law” are good reminders that issues surrounding the industry are far from settled..Still, the IRS aims to make sense of some of the transition - as well as the law as it stands now - with their Marijuana Industry FAQs .

In the FAQs, the IRS notes that while section 280E disallows all deductions or credits for any amount paid or incurred in carrying on any business that violate federal drug laws , section 280E does not prohibit a participant in the marijuana industry from reducing its gross receipts by its properly calculated cost of goods sold to determine its gross income.

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Hypocrites; still illegal in most states, thousands serving prison sentences but they still want a cut of the profits?

seems like a trap

Legalize it first, and then let's talk. Greedy, greedy.

Time to release, erase any charges for marijuana, and stop all testing...

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