Friday, December 4, 2020

The IRS Pot Page

 

In my last bulletin I mentioned the plight of marijuana business owners unable to deduct their ordinary and necessary business expenses with the exception of cost of goods sold. A bill in the House has been delayed which would have decriminalized marijuana. So even in states where it is legal to buy and Puff the Magic Dragon these deductions are not allowed. And it gets worse. IRS agents are focusing on weed dispensaries for examination looking to disallow write-offs that are claimed. So far, courts have sided with the IRS until congressional action is taken. But who would’ve ever thought that the IRS would have a “pot page” on its website which includes a short list of FAQs! I can just imagine a bunch of 60s hippies sitting around sharing their iPads while puffing and perusing the pot page. Man, it is a brave new world.

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