Legal pot dealers are down to seeds after the IRS finishes with them2/25/2013
Owners of medical marijuana dispensaries are learning that nothing can harsh a buzz faster than the Internal Revenue Service. Legal weed dealers are being crushed by a now-outdated law written to punish drug traffickers from taking shady business expenses; as a result, dispensaries can't take deductions for payroll or rent like other businesses can. "If you have a license from the state hanging on your wall, that doesn't fit the definition of trafficking," attorney Jim Marty said. "Yet the IRS is aggressively auditing this industry." A dispensary's tax bill can reach 75 percent, compared to an average of 30 percent for other businesses. "We're like any other small businesses," one cannabis industry advocate said. "[One] that just happens to be illegal in some states." [Source]
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Should tax laws for medical marijuana businesses be changed?