Motion To Stop IRS From Examining Marijuana Dispensary Up In Smoke
Last week I wrote about The Green Solution, at least by its own account Colorado’s #1 Marijuana dispensary. It was resisting an IRS summons based on the notion the Code Section 280E, which denies marijuana sellers ordinary and necessary business deductions, inappropriately puts the IRS in the drug busting business. Things did not go well for The Green Solution as the Tenth Circuit ruled that the anti-injunction act applied allowing the IRS to proceed. Now another shoe has dropped.
IRS Leans On LA Tax Assessors For Land Building Allocation
The practical problem that practitioners face when doing returns for people who own a couple of rental properties is that it is difficult to justify spending anything on an appraisal for rental properties in the sub million dollar category. Moving $100,000 from land to residential real estate will give you a bit over $3,600 in additional depreciation, which might save you a thousand bucks, unless, as often happens, your losses are suspended by the passive activity loss rules. Somebody selling cost segregation studies will make a presentation showing the future value of deprecation deductions, but it can be an uphill battle with skinflint real estate operators.
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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.