Marijuana use is on the rise. About 20 million people in the U.S. use marijuana, up 生の大根のすりおろしで手軽に酵素を摂ろう！ from 15 million users ten years ago. Legal for recreational use in four states and legal for medical use in 25 states, eventually, it’s anticipated that pot will be legal everywhere. But, there’s only wholesale nfl jerseys one problem. It remains illegal for U.S. federal purposes. Marijuana is listed as a Schedule I controlled substance under Federal law, the most tightly restricted category for illegal drugs.
Despite its illegality at the federal level, entrepreneurs are increasingly getting into the pot business. There’s a lot of money Play to be made, and demand for the wacky weed remains at an all-time high. Medical use of marijuana is becoming more mainstream. As long as we have a liberal Democrat in the high office, chances are the federal law will not be widely enforced, and pot dispensaries will remain open for business. So, lots of people are entering the pot field. Some are successful, and some are wildly successful.
Taxing authorities love profitable businesses. Without profits, it’s difficult for governments to collect taxes. Marijuana dispensaries are very profitable. And the dispensaries are happily paying their share of taxes, right? Wrong. Problem is, Internal Revenue Code Section 280E disallows overhead deductions of businesses that traffic in controlled substances. Although dispensaries may deduct the cost of goods sold, they may not deduct overhead costs, such as rent, utilities, salaries, etc. This results in pot dealers having effective tax rates of 60%, 70% or more.
Dispensaries in California have had limited success fighting the IRS in court. The main take-away from the court cases is that overhead is deductible if it relates to “caregiving services.” So, if a dispensary can successfully argue that they have two businesses, selling pot (1) and providing caregiving services (2), overhead related cheap jerseys China to the caregiving service may be tax deductible. Caregiving services may consist of counseling, hosting educational classes and providing other social services, for example. But, overhead costs related to pot sales are not deductible.streaming film
So, the tax rules are still largely anti-pot. One California dispensary, Harborside Healthcare Center, wants to change all of that. Harborside is the wholesale mlb jerseys largest marijuana dispensary in the country, grossing $30 million in sales per year from 225,000 patients. Harborside is currently fighting a $2.4 million IRS bill in tax court.
Harborside is arguing that Congress’ intention for Section 280E was aimed at fighting criminals, not companies Cheap such as Harborside, which operates in the open, under the confines of California law. The decision should be interesting and impactful. Stay tuned.