If you live in a state with legal medical marijuana dispensaries you probably know that the feds do what they can to stamp them out. It’s that old federal versus state law tension. In the case of pot dispensaries, the tension is palpable.
And while the feds are doing everything they can to put out the pot fires, there are already around 2,300 legal dispensaries in the U.S. with more opening all the time. The nationwide crackdown involves a multi-pronged approach, and that’s not easy for the dispensaries or for the people who rely on them. Although taxes aren’t at the top of most people’s list, it surprises even some tax lawyers that obscure tax rules are having such a big impact.
Our tax code is now so massive that even experienced tax lawyers don’t know about every provision. The obscure provision in question is Section 280E. It precludes deductions for any business trafficking in controlled substances. It’s meant to stop drug dealers from claiming tax deductions.
– Read the entire article at Forbes.