Basically progress is waiting for politicians to figure out a way to line their pockets thicker....they know they can...I bet they are working on a plan to prevent so much tax returns....anyone read on how much tax returns some dispensaries received? Something to think about! I need to go back and read, all those tax refunds must have been from the state right, imagine if we found out that feds received tax money and returned some! Eeeeee what a can of pandoras boxes!
I would be very curious to know how the FEDERAL tax returns are being done for these businesses,mostly to know if the FEDS are allowing common business deductions to be taken?There is a spot on all tax returns(line 21/form1040) to claim OTHER income gotten from illegal activities,yes you are supposed to claim it,but you have to explain what the money is from and you cannot file a schedule c for business deductions on a criminal enterprise so in other words you are taxed on the gross and not minus expenses like payroll,rent/mortgage,power bill etc etc which are generally deducted from your gross to find your taxable income.Keep in mind that during alcohol prohibition which is as close as we can come in the comparison to MJ most people including Al Capone were convicted of tax evasion NOT alcohol/criminal charges and the way i read tax code in this case is you are damned if you do and damned if you dont,if you dont claim it it is tax evasion and if you do claim it it is admission of guilt of manufacturing/distribution of a schedule 1 drug.
On the other hand if they are allowing it than every cannabis grower in the US would be able to claim any expenses they incurred growing(can you imagine writing off your power bill,lol)as long as they also claimed any gains,they could technically even amend their taxes up to 3 years back and request repayment of said expenses,fuck what a can of worms,lol.I do know this,Their are NO special rules i know of for the MJ industry or colorado,federal tax law is the same for everybody in the US with no exceptions,Anyone have any inside info on how they are getting this done?TK?Anyone?