The state legal marijuana industry has seen some big changes in 2015.
Although federal laws remain unchanged at tax time, dispensary owners, growers, drug manufacturers, and everyone else in places with a legal medical marijuana industry in the state should be aware of these changes. at tax time.
By law, anyone who generates $1 in business income must file a tax return with the IRS. That’s when they get to subtract your business deductions. Marijuana entrepreneurs are no exception. If your state has repealed the medical ban, it’s the politician’s job to change federal laws that are unfair to its residents and businesses.
A change in those federal laws would save American taxpayers more than $13 billion each year. Time has shown that marijuana is not a gateway drug, nor does it cause insanity like movie producers once said it did to thrill their viewers. And if smoking a medication is the problem, medical users where dispensaries are available have realized that they can also vape, eat medication, drink juice or other beverages, use tinctures, lozenges or sprays. Public use has declined where medical marijuana clubs are available.
All other small or large businesses can take deductions when they file their federal IRS return. Within the states where marijuana is legal for medical purposes, there are companies that deserve fair treatment. There are 23 states and the District of Columbia that now allow medical marijuana; those states collect taxes (or plan to collect taxes) and establish prescription holder controls.
Before the men and women of America’s legally state marijuana businesses can compete fairly, those federal laws must be repealed. A new federal ruling made in a San Francisco federal court prevents the DEA from prosecuting medical marijuana dispensaries if they are state-sanctioned. The Rohrabacher-Farr Amendment prohibits the Department of Justice (DOJ) from using federal funds to block state marijuana laws. This 1,603-page federal spending report essentially ends the use of taxpayer money to block the medical use of marijuana.
Where medical marijuana is legally available, sustainable healthcare increases and prescription pill overdoses decrease. Marijuana has been claimed to be a super antibiotic, good for strokes and other brain problems, helpful in relieving pain, nausea, Parkinson’s, inflammatory bowel disease, PTSD, epilepsy and other seizures, to kill the cancer and Forbes magazine even asked if her elderly father should give it a try.
Dr. Sanjay Gupta has said that we should legalize medical marijuana now. This is a plant that was once listed in the US Pharmacopeia and is readily available in pharmacies. With its use, people have come out of hospices and hospitals to live a fuller life. The US federal government even holds patent #6630507 from 2003 for its use as an antioxidant and neuroprotectant.
The Justice Department issued a memorandum allowing Indian tribes to grow and sell marijuana on their land. Other countries and people are also rushing to end their medical ban; for example, Israel uses marijuana in its hospitals and for research. Many senators and governors want it made legal for medical use again.
The IRS Advisory Code Report says that marijuana businesses are now legal in some states, but remain illegal under federal law. Marijuana businesses cannot deduct all of their expenses because the federal government says that no deduction or credit will be allowed for any amount paid or incurred if said trade or business (or the activities of the trade or business) involves trafficking in a form controlled. substance. Marijuana under federal law is a controlled substance with no medical use; however, the federal government holds a patent for medical use.
Those who want to keep medical marijuana illegal are mostly getting rich off of it being an illegal substance, even though many don’t pay taxes on the money they make. This includes corrupt and illegal growers, dealers, trimmers and drug makers, people who receive taxpayer assistance checks but work in this trade, and those who want to keep marijuana on the black market. They don’t care what the citizens want, how they voted, or whether or not it helps a person’s medical condition, as long as they make money.
Medical marijuana users and business owners in states where citizens have voted to legalize marijuana use once again need to have regular meetings with their state politicians to discuss unfair tax issues. The people have spoken, now it’s up to the politicians to change those laws.