According to the IRS, purchasing marijuana in order to re-sell it is not a business deduction for tax purposes. This is because it is still a violation of federal law to sell marijuana, and selling any federally illegal substance is not tax deductible. Got it?
The IRS is auditing and sending huge taxbills to large dispensaries. Berkely Patient Group, for instance was just handed a 6 million + tax bill. Other dispensaries are being audited. http://coloradoindependent.com/79820/irs-targets-medical-marijuana-businesses
In addition, one federal jurisdiction recently sent a memo to Oakland, letting them know that they intend to invoke federal law against cannabis distributers
From the memo:
We will enforce the CSA (Controlled Substances Act) vigorously against individuals and organizations that participate in unlawful manufacturing and distribution activity involving marijuana, even if such activities are permitted under state law.
Others who knowingly facilitate the actions of the licensees, including property owners, landlords, and financiers should also know that their conduct violates federal law.
One of the keys to solving these problems lie in the federal rescheduling of cannabis. The following articles explain how cannabis is scheduled.
And here is the actual scheduling chart http://www.justice.gov/dea/pubs/scheduling.html
Another very important component is to understand the world treaties which many countries signed, with the USA at the helm, to prosecute cannabis users. These treaties need to be rewritten. What politician will use their political capital on this issue?
This United Nations Treaty on narcotic drugs illustrates why the path most likely to be successful is through the medical pathway. This medical issue does not belong to any group, nor is it the pulpit to which any one person or entity has a right to claim ownership. If we are to end prohibition, this issue and information is important for us all.
Get smart, get informed, stay tuned.