What Is The Medical Marijuana Industry Supposed To Do At Tax Time Since Their Crop Is Illegal?

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Running a business isn’t easy, but the men and women in the state’s legal medical marijuana industry have it worse than everyone else because of outdated federal laws. The way current laws are written, even though these people run a legal business in the state, they are not allowed to deduct all of their expenses like other business owners do at tax time. And for some, that means they could end up owing more taxes than their entire year’s earnings.

This leaves dispensary owners, growers, drug manufacturers and everyone else in the 23 states with a legal medical marijuana industry in the state confused about what exactly they are supposed to do at tax time. . And since the laws are the problem, even a good accountant can’t provide the answers you want to hear.

Most of these small business owners have never run a store or business before, and are now finding that they can’t compete by the same rules as everyone else. These men and women are already paying state business taxes and fees that are terribly higher than those charged to any other business owner, including the cigarette, alcohol and adult industries.

And to make matters worse, our Federal Tax Court has already denied deductions on everything from store rent to medical marijuana legally purchased for sale to patients in this state-sanctioned industry. The IRS does this by combining the Controlled Substances Act of 1970 that classifies marijuana as a Schedule I drug along with Section 280E of the IRS Code that rejects the deduction for controlled substances expenses. This allows them to take any profit made by these small business owners and take them out of business. Because of this, everyone in the medical marijuana industry who submits an honest tax return becomes an easy target for anti-marijuana auditors.

Before these legitimate businessmen and women can compete fairly, both federal laws must be repealed. Until they are, the state’s legal medical marijuana industry will be forced to compete in today’s tax world, a place where the IRS can wipe out all of its profits at any time and the black market is safer.

Because the US Department of Health and Human Services holds patent no. 6630507 for the antioxidant properties of marijuana, and the US patent office has granted marijuana patents to large pharmaceutical companies, it is obvious that marijuana has medicinal value. Combined with the documentation of successful medical use in Israel and other countries, it appears to be time to repeal the 1970 Schedule I drug label. But that won’t happen any time soon unless the medical marijuana industry joins in and demands that. change.

If producers, dispensary owners, drug manufacturers, and patients do not speak up for this industry today, they can expect continued problems for years to come. Medical marijuana patients and business owners have only two options; they can continue to accept discrimination because of the choice of a natural medicine or they can come together as a group and change those federal laws. If they choose the first option, they might as well close their doors now because the taxes will bankrupt them pretty quickly anyway; But if they push for the equal rights they deserve as an industry, they will open the door to legitimate business success and real profit.

Since every politician takes an oath to represent the voters in his state, and his state has repealed the ban, it is the politician’s job to change those federal laws. Medical marijuana business owners need to schedule meetings with their senators and state representatives to discuss this issue today. And they must expect results. All voters have the right to demand accountability, and state-licensed medical marijuana businessmen and women have the right to know what their elected officials have done to end this tax discrimination.

If the industry waits too long, it is obvious that voters in medical marijuana states will have their rights nullified, big business will have control of the marijuana plant, poor people who have been successful with medical marijuana will be forced to return. to dangerous and addictive activities. prescriptions, health insurance costs will skyrocket as everyone will be forced to pay for Big Pharm’s synthetic marijuana prescriptions for people with insurance, and the ban against nature will continue.

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