Toking And Taxes Don't Mix, Says IRS
function share_this(num) {
 tit=encodeURIComponent('Toking And Taxes Don't Mix, Says IRS');
 site = new Array(5);
 return false;

Toking And Taxes Don't Mix, Says IRS
Posted by CN Staff on September 16, 2011 at 11:15:00 PT
By Robert W. Wood, Contributor
Source: Forbes
USA -- It’s not every day members of Congress get to write the IRS asking for help with a little drug problem. Marijuana—for medical use—to be exact. Not getting some, mind you, but taxing it more fairly. The IRS has released a passel of letters it sent to members of Congress replying to the their letters about taxing medical marijuana. The pot-tax-worried members included Representatives Sam Farr (D-CA), Linda Sanchez (D-CA), Jared Polis (D-CO), Raul Grijalva (D-AZ), Pete Stark (D-CA) and Barney Frank (D-MA). The members of Congress have a point—if their states allow pot dispensaries for medicinal use, how is it remotely fair for dispensaries to be taxed in an arguably confiscatory way?
As I noted here, the IRS and Tax Court deny tax deductions for dealing in controlled substances even though the expenses—like rent—are legitimate and would qualify for regular “business expense” tax deductions.  The culprit is Internal Revenue Code Section 280E. It precludes deductions for any business trafficking in controlled substances. Even though some state laws allow marijuana for medical use—like California—federal law still classifies it as a controlled substance. Whether or not the feds choose to enforce the criminal law, the IRS says the tax law is clear that Section 280E kicks in. The IRS didn’t make the Internal Revenue Code, Congress did! If the tax code says there’s no deduction, that’s that. Besides, even the U.S. Supreme Court has said there is no exception in the Controlled Substances Act for medically necessary marijuana. See U.S. v. Oakland Cannabis Buyers’ Co-Op. Of course, denying a deduction to medical marijuana businesses effectively means they are paying tax on their gross, not their net income. Fortunately, some medical marijuana dispensaries squeak by the tax issues by having two lines of business and segregating their activities. In fact, one U.S. Tax Court ruling says marijuana dispensaries can legally deduct expenses associated with all activities except dispensing marijuana. See Californians Helping to Alleviate Medical Problems Inc. v. Commissioner. Although this case disallowed the expenses of selling marijuana, it ruled that the dispensary was also engaged in the business of care-giving. All those expenses were OK. It turned out only about 10% of the premises were used to dispense marijuana, and that made most of the rent deductible. Source: Forbes Magazine (US)Author: Robert W. Wood, Contributor Published: September 16, 2011Copyright: 2011 Forbes Inc.Contact: readers forbes.comWebsite: Medical Marijuana Archives 
Home Comment Email Register Recent Comments Help 

Comment #18 posted by Hope on September 21, 2011 at 06:41:47 PT
[ Post Comment ]

Comment #17 posted by observer on September 20, 2011 at 19:25:47 PT
''That's That'' 
re: "If the tax code says there’s no deduction, that’s that." (Robert W. Wood, 2011)"There's as much chance of repealing the 18th Amendment as there is for a hummingbird to fly to Mars with the Washington Monument tied to its tail." (Senator Morris Sheppard, 1930)
[ Post Comment ]

Comment #16 posted by FoM on September 20, 2011 at 11:39:02 PT
Thank you. As always very nice.
[ Post Comment ]

Comment #15 posted by museman on September 20, 2011 at 09:51:15 PT
My reasons...
for supporting any kind of cannabis liberation, is about freedom. A lifetime of experience, and information gathering has led me to the realization, that like any other social, or cultural disease, there is a root cause.That root cause is traceable to the numerous Dynasties of power that have ruled the world since Sumeria. These historical facts and references are there -without the conclusive pieces that bind them all together- in the various histories that have been written down. There is no one way -in mainstream thought- that all this information can be correlated into the same conclusions - as is evident by the numerous ideological theory that has come from the study. However there is one way that works every time.That one way is directly linked to faculty that social/religious/economic/political/academic systems vehemently deny. It's called the 'intuitive.'The intuitive is the direct reception of information, without contaminating, and limiting the process through mental obstacle courses. The intuitive is the 'Now Interface' that some hippies attempted to find through psychedelics, -and some did experience it- but then they had to 'come back down' to the world that denied them this experience in the first place, and find it extremely difficult to hold on to the perspective.The intuitive gives us access to the actual, real history that is recorded in our DNA, in the stones, and living organisms of this planet. Hindu call it the 'Akasha' and in my researches -that is the closest description to what it is that I have found. "The Universal Library"The denial comes from 'experts' and 'science.' From a narrow, left-brain, contrived perspective that is taught, no rather POUNDED into our heads from the moment we begin to get up and walk around. The denial is also a perfect re-direct of consciousness into social mind control.And if one accesses their perspectives on reality, solely from their memory storage functions, and limit the faculties of reason an logic to socially, politically, and religiously acceptable mainstream records - including the mental versions- then the actual power of the conscious being is controlled by that information -that was crafted by the rulers, a long time ago.The 'Beast' is a body, made up of all the worldly systems of economics, political 'reasoning,' false beliefs in numerous fragmented religions, and all the suborned consciousnesses that feed it every day with their time and energy.The head of that beast is a handful of creatures who look very much like human beings, but whose motives and agenda make them look more and more Alien every day. That head is in power because it/they have the masses convinced that the game they are forced to play; -labor force and cannon fodder- is the only option available.In past, with incredibly less of an even playing field than we have now, those brave individuals who attempted to access the truth through their intuitive talent, were 'heretics' 'witches' 'weird people' etc.Freedom and Liberty are our birthright, every last one of us, and it is not a commodity that can be regulated. At least it's not supposed to be. But that is what LAW is all about; regulating liberty. What are considered to be 'privileges' -that only a certain level of wealth garners, are actually the birthright of every single human being ever born. For any group of individuals to hijack that for themselves -which is EXACTLY what happened, is evil, malign, corrupt, and demonic. Yet they live their lives as if they were somehow 'more' or 'better' than the rest of us, and they hide behind their systems of LAW and all the other supporting institutions, buying goods and people at whim.The people, and certain individuals throughout history have tried to change this situation, through revolution and such, but it never worked, because the bottom line is what people believe in. If you kick out one rich man, but then claim his riches for yourself, well what has changed? Nothing.If the people continue to believe in false values, false gods, and false authority, then no matter what is tried the same systems will prevail.It has been a catch 22 of 'biblical proportion' since, as I said, Sumeria. But there is something new in the mix. Consciousness.But what is commonly thought of as conscious, is actually just a bunch of recordings playing over and over in the mind. True consciousness is perception, knowing, and understanding, INTUITIVELY, without the time-binding past perception, the 'looking backward' state of mind that most people have been trained to exist within.Consciousness will eventually win this conflict. Consciousness is becoming aware, and people are beginning to break loose from the antiquities of falseness, and if they learn how, and where to look with that consciousness, then the BS will just naturally fall away, like the husk of a seed after the leaves and roots have pushed through.As far as money and pot are concerned, even as I disdain the values that spawned our economic imbalance, it is that imbalance that makes me actually supportive of a redistribution of wealth through the cannabis culture. Unfortunately, the nature of economics, is the false belief in the sovereignty of capital, and the bigger bucks always gets the bid. So my concern is not that pot growers get rich, but that the rich use their tools of LAW and social programming to ensure that THEY are the ones to profit.The solution is to sever the root, and stop treating the surface symptoms. And the root is directly fed by the energies of the populace, who find their state-supplied excuses to continue their consumer relationship to the 'hand-that-feeds-them.'All we can do is continue to educate the masses, until a significant number has become aware of the truth -about many things.That is my motivation.LEGALIZE FREEDOM
[ Post Comment ]

Comment #14 posted by FoM on September 19, 2011 at 14:17:07 PT
State Dems Back Marijuana-Legalization Initiative
By Jonathan MartinSeptember 19, 2011The state Democratic Central Committee threw its support behind a marijuana legalization initiative this weekend, calling the continuing prohibition against the state's second-biggest cash crop a waste of public money.At a meeting in Bellingham, the Democrats cited law enforcement costs -- "simple marijuana possession charges now account for fully half of all drug arrests in Washington" -- and the potential to raise $215 million in new tax revenue each year if Initiative 502 passes, among other things.Initiative 502 is sponsored by the ACLU of Washington and most prominently endorsed by former U.S. Attorney John McKay, Seattle City Attorney Pete Holmes and travel guru Rick Steves. If paid signature-gathering efforts succeed as expected, I-502 will go to the state Legislature this upcoming session. If the Legislature punts, the initiative will be on the November 2012 ballot.Unlike previous efforts aimed at simply de-criminalizing marijuana, I-502 would allow pot to be sold in stores licensed by the state Liquor Control Board, with hefty mark-ups.Copyright: 2011 Seattle TimesURL:
[ Post Comment ]

Comment #13 posted by afterburner on September 19, 2011 at 08:56:07 PT
Look Out, Mamma, 
There's a White Boat Comin' up the River (Powderfinger, Neil Young)News | Canada.
Tories to use majority muscle to push through agenda.
Conservatives will start with a sweeping crime bill introduced Tuesday that is expected to bring tougher penalties for serious crimes along with expanded police powers to track suspects.
21 minutes ago.
[11:42 AM 9/19/2011].
Parliament returns Monday with Conservative government pledging action on everything from law and order to axing the long-gun registry.
SongMeanings | Lyrics | Neil Young - Powderfinger
[ Post Comment ]

Comment #12 posted by afterburner on September 19, 2011 at 08:37:52 PT
Hope # 8 - Yes, Slavery!!!
"It's like they, the government, the prohibitionists, and their minions think they actually own other people."When you enter the doors of employment, you give up your human rights to the rule-by-fiat of the employer.Die Gedanken sind frei. (German: "The thoughts are free.") Just watch out for the brainwashing by the media, the government, big business and their paid hacks!
Die Gedanken sind frei - Wikipedia, the free encyclopedia
[ Post Comment ]

Comment #11 posted by The GCW on September 19, 2011 at 08:30:01 PT
Shared feelings.
I've helped the "medical marijuana" movement. But it's not about the medical use, as the end of activism. It's about completely legalizing the plant cannabis. And that's good for citizens who choose to use cannabis medically; no more extortion money to government... for permission to use a plant. -=-=- but it may not be good for business men.On topic,,,This news item was in the local paper today. Near the end there is mention of citizens perhaps voting against paying a 5% tax on medical cannabis because of the very large new fees dispensaries must now pay. -Those increased fees will get passed onto the consumer ---and now there is a need to not increase costs any further, which would of course also be passed onto consumers.(news title) "Breckenridge pot shops angry over high licensure fees""Existing MMCs face thousands of dollars in ‘new business' fees"BRECKENRIDGE — With state regulations redesignating medical marijuana dispensaries as medical marijuana centers, the existing businesses are now facing approximately $6,500 or more in licensure fees from the Town of Breckenridge. “I was surprised to learn that after being in business (for a year), I'm being treated as a new business and being hit with a fee that pushes $7,000,” Charlie Williams, owner of Alpenglow Botanicals told council members at a recent meeting. Owners of several medical marijuana centers (MMCs) turned out for the meeting to protest the increased fees, which, for the first year, are nearly double the fees paid by liquor establishments. cont."Some council members said they worried anger over the high licensure fees would incite medical marijuana retailers to rally voters and campaign against the measure."Cont. 
[ Post Comment ]

Comment #10 posted by FoM on September 19, 2011 at 07:06:54 PT
Had Enough and Museman
 I never would have done CNews if I felt pot shops and people feeling that they have a right to make big money before the federal laws are changed was to be the end result.  I want the laws changed for all people not just those who are obsessed with making tons of money. I am totally turned off by this behavior and I think many people are fed up too. The movement could die because of it but my conscience is clear.
[ Post Comment ]

Comment #9 posted by Had Enough on September 19, 2011 at 00:57:11 PT
Re: #7
I’ve said that to many people for decades...They listen to the words (at best)....but do not hear...but lately I’ve noticed...those same from a while back....seems to be squawking about how things have come those people have told me back then “I’ve got mine...You have yours...Why should you care?...Well I think at least some of the sheep are getting the message...Especially since the lost their Cadillac Escalade...roof over their head...and food off their table...Sad...but true...
[ Post Comment ]

Comment #8 posted by Hope on September 18, 2011 at 18:50:04 PT
Thank you, Museman.
I guess that's as good an explanation for what's happening as any. It's so sad. So awful. So wrong. It's like they, the government, the prohibitionists, and their minions think they actually own other people. Very like it. It's wrong. It's so sad. It's sure not freedom.
[ Post Comment ]

Comment #7 posted by museman on September 18, 2011 at 17:07:09 PT
#3 Why?
Because in 1788, the framers of this country's laws deliberately left out ANY reference to the rights of the people -in general- and left the power of the vote, the privileges of political action, and the control of resource to the wealthy merchants and aristocrats that funded the last days of the war (but whose promises of financial backing america's first IOU -to the people got them into the war -and that promise was never really made good on.)Because, since the foundation of the american banking system, certain wealthy families have controlled the lives of countless men and women who 'served' as fodder for their global conquest.Because since americans struggled against their own domestic apartheid, having to AMMEND the constitution just to get some basic rights established, having to create unions to have some kind of lever against the rich, to create 'child labor' laws -that have been turned around to server the intentions of the rich rulers- and all number of 'compromises' with the controlling faction of this country, but yet all the struggle is so easily wiped out by a non-representative government at their 'discretion' and whim.Because, even after all that, and the coming together of a generation to stop only one of the hundreds of wars fought to gain wealth, power, and real estate by "our" government, Nixon instituted the NSA, which through Reagan and Bush, we have ended up with the "patriot act" that the falsely-believed-as-benign democrats renewed for another decade.The cops, lawyers, and their political and economic masters believe in their own power and unconstitutional privileges, more than the ethics of proper human behavior, and so they consistently behave very badly, simply because they can.We the people let this happen, for whatever reasons. We the people really, really need to learn how to say no to LAW! LAW is not written for the people, it is written for the rich people.Change the way we as a people labor for these elitists, they're trying to put the economic squeeze on us so we will give in to their re-structuring of the middle class, and except lower wages, while they raise the prices -what a scam!Just say no to $$$ Like John Lennon said "I wonder if you can?"LEGALIZE FREEDOM
[ Post Comment ]

Comment #6 posted by FoM on September 18, 2011 at 06:15:51 PT
News Article on N.J. Medical Marijuana Issue
N.J. Medical Marijuana Center Official Booted Over Ties To Con Man Solomon DwekSeptember 18, 2011URL:
[ Post Comment ]

Comment #5 posted by FoM on September 17, 2011 at 18:22:52 PT
I will keep looking for an article to post. I don't know what it means. 
[ Post Comment ]

Comment #4 posted by Hope on September 17, 2011 at 17:23:50 PT
Comment 3
Why? I just don't understand why. It seems insane. It's frightening. The people who do these things to other people over cannabis are truly monsters.
[ Post Comment ]

Comment #3 posted by Hope on September 17, 2011 at 11:57:29 PT
Oregon State Police harass Federal medical marijuana patient Elvy Musikka
[ Post Comment ]

Comment #2 posted by afterburner on September 17, 2011 at 10:31:04 PT
CSA Schedule II Controlled Substances:# Cocaine (used as a topical anesthetic);
# Methylphenidate (Ritalin and Concerta) & Dexmethylphenidate (Focalin) (used in treatment of Attention Deficit Disorder);
# Opium and opium tincture (laudanum), which is used as a potent antidiarrheal;
# Methadone (used in treatment of heroin addiction as well as for treatment of extreme chronic pain)
# Oxycodone (semi-synthetic opioid; active ingredient in Percocet, OxyContin, and Percodan)
# Fentanyl and most other strong pure opioid agonists, i.e. levorphanol, opium, or oxymorphone;
# Morphine
# Mixed Amphetamine Salts under brand name Adderall
# Lisdexamfetamine under brand name Vyvanse
# Dextroamphetamine (Dexedrine) Dextromethamphetamine (Desoxyn)
# Hydromorphone (Dilaudid)
# Pure codeine and any drug for non-parenteral administration containing the equivalent of more than 90 mg of codeine per dosage unit.;
# Pure hydrocodone and any drug for non-parenteral administration containing no other active ingredients or more than 15 mg per dosage unit.;
# Secobarbital (Seconal)
# Pethidine (USAN: Meperidine; Demerol)
# Phencyclidine (PCP);
# Short-acting barbiturates, such as pentobarbital, Nembutal;
# Amphetamines were originally placed on Schedule III, but were moved to Schedule II in 1971. Injectable methamphetamine has always been on Schedule II;
# Nabilone (Cesamet) A synthetic cannabinoid. An analogue to dronabinol (Marinol) which is a Schedule III drug.
# Tapentadol (Nucynta) A new drug with mixed opioid agonist and norepinepherine re-uptake inhibitor activity., Ritalin, laudanum, methadone, oxycodone, Fentanyl, morphine, Adderall, codeine, Seconal, Demerol, PCP, amphetamines, methamphetamine can be prescribed and therefore, dispensed by a pharmacy. Does this mean that the pharmacies cannot expense deductions--like rent--because the pharmacies are trafficking in controlled substances?{ IRS and Tax Court deny tax deductions for dealing in controlled substances even though the expenses—like rent—are legitimate and would qualify for regular “business expense” tax deductions. The culprit is Internal Revenue Code Section 280E. } This is another convoluted double-standard used to prop up the myth that cannabis is not medicine.Change the law, Congress, for God and Country! 
[ Post Comment ]

Comment #1 posted by Paul Pot on September 17, 2011 at 01:01:22 PT:
tax money
The idea of taxing a thing is ridiculous in the computer age. Excise and duty existed at a time when the government got their cut by hanging out at the ports and taxing the tobacco and other goods being loaded and off loaded from the ships. But now that's obsolete, with banks handling huge sums of money electronically all you need is another line or 2 of program and just take a small cut of every financial transaction. The big guys will end up paying their tax and the small business won't have to burn the midnight oil trying to work out the governments take of their profits. Because that is all we should ever tax is profits not things. Taxes on things end up being discriminatory. Remember the 1937 Marihuana tax act.
[ Post Comment ]

Post Comment