Pot Dealers deductions “up in smoke”

Posted by on Aug 14, 2015 in Blog | 1 comment

Most businesses are allowed to deduct the ordinary costs of doing business under IRC § 162. But marijuana dealers are only allowed to deduct expenses related to cost of goods sold. §280E prohibits the deduction for most business expenses for businesses that market a “controlled substance” under Federal law. In the Olive case, all business expenses were disallowed except for those relating to cost of goods sold. On the bright side,...

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CA passes it’s first Earned Income Tax Credit.

Posted by on Aug 6, 2015 in Blog | 0 comments

Included in California’s 2015-2016 budget is it’s first ever EITC. Here is a snippet from the budget summary. “The state’s first Earned Income Tax Credit will help the poorest working families in California. This targeted credit provides a refundable tax credit totaling $380 million for wages and focuses on the lowest‑income Californians — households with incomes less than $6,580 if there are no dependents or $13,870 if...

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