Marijuana Industry Faces Challenging Tax Regime
Traffickers are not taxed on their gross receipts because of 280E. They are entitled to a deduction for what they pay for their product – cost of goods sold – because we have an income tax, not a gross receipts tax. The deduction for ordinary and necessary business expenses (Code Section 162)- like gas for your vehicles, bribes to the police, bullets and rent on safe houses- is a matter of “legislative grace” and can be denied because, you know, drugs are bad like they teach you in the DARE program, that my kids had in elementary school.
Banks Not Providing Taxpayers With Accurate Mortgage Interest Information
It seems that this problem should really be solved by the IRS. Tell the banks exactly what they are supposed to put on Form 1098 and provide some sort of expedited refund process. It crosses my mind that maybe some sort of catch-up deduction considered as an accounting method change might do the trick including giving relief for closed years.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.