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What does the Control Substances Act say about marijuana and the taxation of them? Does it cover any such tax rules?
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William Rogers, CFP, MBA, EA
Generally speaking, because marijuana is a Schedule 1 narcotic any business engaged in the sale of marijuana i.e. dispensaries, grow operations, medical clinics, etc. are deemed in be engaged in an "illegal trade or business" per IRC 280e. Therefore, all deductions would be disallowed per IRC 280e except for expenditures related to the "cost of goods sold".Leave a Comment 31 weeks ago