Tax Laws Prevent Legal Marijuana Businesses From Taking Deductions

Legal marijuana businesses face tremendous tax bills because they cannot take deductions on rent, employee salaries or utility bills, The New York Times reports. The ban on marijuana deductions comes from a federal law aimed at drug dealers.

The law, passed in 1982, was designed to prevent drug dealers from claiming their smuggling costs and couriers as business expenses, the article notes. Congress passed the law after a drug dealer who had been jailed on drug charges went to tax court to argue the money he spent on his business should be considered tax write-offs.

The provision bans all tax credits and deductions from “the illegal trafficking in drugs.” Marijuana business owners argue the provision is preventing them from hiring more workers, and in some cases may even force them to shut down.

Full story of marijuana tax laws on businesses at drugfree.org

Published by

Will Savage

Quantum Units Continuing Education provides online CEU training's to licensed professional mental health therapists, counselors, social workers and nurses. Our blog provides updates in the field of news and research related to mental health and substance abuse treatment.