cannabisnews.com: MMJ Stores Blocked From Federal Tax Breaks
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MMJ Stores Blocked From Federal Tax Breaks
Posted by CN Staff on March 17, 2014 at 11:48:42 PT
By John Lee, USA Today Network
Source: USA Today
USA -- The roughly 2,500 medical marijuana dispensaries in the United States pay taxes to local, state and federal governments. But they can't take the same federal tax breaks that other small businesses take.A section of the federal tax code known as 280E was meant to prevent tax write-offs for illegal drug activity. It was enacted in 1982, before medical marijuana was legalized in any state. Now the Internal Revenue Service is applying 280E to pot shops operating legally under state law.
The IRS says it is following the law in not allowing these deductions. Any changes to 280E would require Congress to amend either the Internal Revenue Code or the Controlled Substances Act, according to a 2010 letter from the IRS to members of Congress.Although 20 states and D.C. have legalized medical marijuana, the Controlled Substances Act still lists marijuana as a Schedule 1 drug, the most dangerous category.Because of 280E, the effective tax rate for many marijuana businesses is 50% or more, according to Taylor West, deputy director of the National Cannabis Industry Association, and Henry Wykowski, a lawyer representing marijuana businesses.The majority of businesses audited by the IRS end up settling, but Canna Care, a medical marijuana dispensary in Sacramento, Calif., is fighting the IRS' charge that it owes nearly $875,000 in back taxes.SnippedComplete Article: http://drugsense.org/url/yIjuZVDXSource: USA Today (US) Author: John MaxfieldPublished: March 17, 2014Copyright: 2014 USA Today, a division of Gannett Co. Inc.Contact: editor usatoday.comWebsite: http://www.usatoday.com/CannabisNews  Medical Marijuana Archiveshttp://cannabisnews.com/news/list/medical.shtml 
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Comment #2 posted by Oleg the Tumor on March 20, 2014 at 09:15:00 PT:
"Not targeting the sick", are we?
"Because of 280E, the effective tax rate for many marijuana businesses is 50% or more, according to Taylor West, deputy director of the National Cannabis Industry Association, and Henry Wykowski, a lawyer representing marijuana businesses."This is the same old "run them into the ground!" strategy, updated for the ignoids-come-lately now feeding at the trough.Not helping the sick when you could have and should have "has consequenses".Being on "the wrong side of history" is one of them, and its a doozy!
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Comment #1 posted by runruff on March 17, 2014 at 12:26:08 PT
Some are not nice!
On Facebook someone asked if I was fulfilling my "Bucket List"?I came back with, "A bucket of KFC, maybe?"
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