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Tax Woes Of The Marijuana Business Where Conservatives Lose Their Enthusiasm For States Rights

Tax Woes Of The Marijuana Business Where Conservatives Lose Their Enthusiasm For States Rights

One way to mitigate the effect of 280E is to allocate expenses to a separate legal business.  This technique was upheld by the Tax Court in Californians Helping to Alleviate Medical Problems in 2007.  Free services such as yoga, instructions in use of vaporizers and on-site munchies do not help though.

Nick indicated that the IRS has been very aggressive in auditing cannabis establishments.  Audit coverage is high and there is little give.  They are looking deeply into payroll records for 280E disallowance and holding firm on not updating what goes into cost of goods sold.  Based on the 471 interpretations, cannabis establishments are not being allowed to have the advantage of bonus depreciation.

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Hole Opens In Tax Blogosphere – Say It Ain’t So Joe

Hole Opens In Tax Blogosphere – Say It Ain’t So Joe

There used to be three sources for an overview of the tax blogosphere. Joe’s daily summary, a weekly summary by Paul Caron and Bob Flach’s What’s the Buzz. The Tax Prof turned his weekly summary over to Joe making it a compilation of his daily summaries.  What’s The Buzz is nice, but it never purported to be thorough and Bob Flach, who scorns the expensive software that the rest of the industry uses and hates the GD extensions almost as much as the mucking fess that the idiots in Congress make out of the tax law, restricts his blogging during tax season to instruction to his clients not to bother him.  Joe referred to the Flach version of tax season as a two-month death march.

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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.