The IRS says it is following the law by not allowing the 2,500 medical marijuana dispensaries in the country, who pay taxes to local, state and federal governments, the same federal tax breaks that other small businesses can claim.

Although 20 states and D.C. have legalized medical marijuana, the IRS still applies federal tax code 280E to pot shops operating legally under state law.   Because of 280E, a tax code enacted over thirty years ago to prevent tax write-offs for illegal drug activity, the effective tax rate for many marijuana businesses is 50% or more and creates very thin profit margins for dispensary owners.

Read Full Story On http://cannabisni.com


Leave a Reply

Your email address will not be published.

About Canna Magazine

This is the "wpengine" admin user that our staff uses to gain access to your admin area to provide support and troubleshooting. It can only be accessed by a button in our secure log that auto generates a password and dumps that password after the staff member has logged in. We have taken extreme measures to ensure that our own user is not going to be misused to harm any of our clients sites.

Category

Canna Business, Medical

Tags

, , , , , ,