What about having a secondary legal business in the same location. An accountant we work with had a client put a used car dealership on his farm. This is the fourth tax year they filed like that so must be working. Or at least the money they saved is working for them. Reply
Michael, I have heard of people having success with this type of strategy. The key, as I understand it, is to make sure the other business is an actual, operating concern. If the IRS believes it’s a sham, they will disallow it. Also keep in mind that in this situation, while you may be able to take deductions for the portion of the property used by the other business, expenses related to the portion of the property used for selling cannabis will remain nondeductible. Matt Walstatter Reply