Blog: Treat dispensaries like real businesses | Cannabis | csindy.com – Colorado Springs Independent

Due to the recent involvement of the Supreme Court of the United States, it’s time to vent about 280E, an obscure tax code that’s giving me the blues. Our story starts with Jeffrey Edmondson…

In 1961, the SCOTUS decided everyone — even people who make money illegally — had to pay taxes. This was actually helpful for Edmondson because in 1974 he was facing a litany of charges in Minneapolis for dealing pounds of marijuana, ounces of cocaine and a lot of amphetamine tablets. Along with the drug charges, the IRS was alleging tax evasion and wanted $17,000 in back taxes, so, Edmondson changed the world from inside prison — by filing a tax return! He wrote off normal business deductions accrued during the course of his drug dealing: the cost of the substances, packaging expenses, mileage on his car, rent, long-distance phone charges, food and even his scale! But 280E put and end to this in 1982. Fast-forward to today, and cannabis is still federally illegal. That means any business involved in “trafficking” of cannabis cannot deduct the typical and necessary business expenses allowed for other businesses. So, some Colorado cannabis companies have an exceptionally high tax rate.

Read More Here…

Share on facebook
Share on twitter
Share on reddit
Share on pinterest
Share on email

Bud Digest

This entry was posted in Vaporizer E-Cigarette Stocks News. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Post a comment or leave a trackback.

Leave a Reply

Your email address will not be published. Required fields are marked *

Your email address will never be published.