5 Federal Tax Planning Tips For Marijuana Businesses
Law360, New York (March 20, 2015, 4:07 PM EDT) -- Medical or recreational marijuana sales are legal in 23 states plus Washington, D.C., but an Internal Revenue Code section barring taxpayers from deducting expenses for enterprises that traffic in illegal drugs has caught dispensaries in a tenuous federal tax position.
Section 280E of the Internal Revenue Code prohibits businesses that traffic in federally prohibited controlled substances from deducting their "ordinary and necessary" business expenses like advertising costs, employee wages and rent expenses.
The law was created in the 1980s as part of the federal war on drugs, after a Washington, D.C., drug dealer filed a tax return, listed his gross sales...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!