In January, we published an article in this newsletter on the state of cannabis taxation, including a discussion of the crippling impact of Internal Revenue Code §280E (IRC §280E) on.
The cannabis industry has experienced significant growth over the past decade, with increasing numbers of states legalizing both medical and recreational use. Currently, cannabis is.
A recent bill passed by Colorado voters allows for the establishment of a regulated market for plant-derived psychoactive substances. Potential owners of natural medicine companies.
Section 280E of the Internal Revenue Code prohibits taxpayers who are engaged in the business of trafficking certain controlled substances (including, most notably, marijuana) from.
Legal Cannabis Companies Pay Insane Tax Rates Thanks To A Minnesota Speed Dealer
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Tax Burden: state legal cannabis companies pay under a tax code created to discourage illegal drug trafficking.
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In 1975, Jeffrey Edmondson, a drug dealer based in Minneapolis, filed his taxes. As a self-employed man in the illicit drug trade, he had a good year he sold 1.1 million amphetamine pills, five ounces of cocaine, and 100 pounds of marijuana. And like any other God-fearing, tax-paying American business owner, he wanted to deduct standard business expenses.
On his tax return, Edmondson recorded $105,300 in costs related to selling speed, weed, and coke during the taxable year of 1974. He also itemized two-thirds of the 29,000 miles he put on his car that year, $250 for a flight to San Diego, and $200 for food and entertainment expenses during a business trip. There was also $50 for a scale, $200 for packaging supplies, and $180 in long distance phone calls. Since Ed