skip to Main Content
IRS makes large profit off the sale of marijuana

IRS makes large profit off the sale of marijuana

The residents of Oregon, Alaska, and Washington D.C will be voting on whether the recreational use of marijuana should be legalized or not.

According to USA Today, these states must have the support of the U.S. Congress, any approved shops for selling marijuana will have a tax code that will result in the federal government making more from the profits of marijuana that the distributors. This tax code is already a threat to states like Colorado and Washington where the recreational use of marijuana is legalized.

Even though the federal government is making a lot of money off of the profits of marijuana, it is still unclear if it is the motive of the federal government to be undermining local businesses. The tax code is called 280E. It was first created in 1982 and says that if a business is selling drugs like marijuana, methamphetamine, cocaine, or heroin, the only expenses that are deductible are the costs that are related to the attainment or growth of the drug. Any costs related to the selling of the drug which includes money for advertising, rent, and salaries for employees are not deductible. [Read More]

Rob MeagherRob Meagher

Rob Meagher

Rob Meagher, CBE’s Founder, President and Editor-in-Chief is a 30 year veteran of the media world. His career has spanned from stints representing the Washington Post, USA Weekend, Reader’s Digest, Financial World & Corporate Finance to the technology world where he worked at International Data Group and Ziff Davis where he was part of the launch team for The Web Magazine, Yahoo Internet Life, Smart Business and Expedia Travels before starting his own marketing and Publisher’s Representative Firm. He also ran all print and online media sales and marketing for the Society for Human Resource Management before partnering with Forbes and then Fortune to create Special Sections covering a variety of topics. Rob, who started CBE Press in 2014, can be contacted at [email protected]

This Post Has 0 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Stories

State board revokes Secaucus dispensary’s cultivating and manufacturing licenses over $700K in unpaid fees

In a shocking move for the local and state cannabis industry, New Jersey officials revoked the Harmony Foundation’s licenses for cultivating and manufacturing adult-use marijuana over unpaid fees, while also…

Trulieve to Close Last California Store; Exit Massachusetts by End of 2023

Trulieve announced today that it is cutting losses in two mature markets where it has a minimal footprint relative to other states. The multistate operator said it is closing its…

Florida recreational marijuana effort clears crucial hurdle

While it still faces a Florida Supreme Court review and an expected legal challenge from state Attorney General Ashley Moody, amendment supporters heralded the breakthrough. TALLAHASSEE, Fla. — The effort…

Texas Companies Look to the Future After Cannabis Bills Fail

In the aftermath of the Texas Senate’s failure to advance two hoped-for cannabis bills during the recently concluded 88th legislative session, cannabis companies in the state have no choice but…

More Categories

Back To Top
×Close search