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10-06-2011, 07:43 PM #1Senior Member
the tax man
Harborside Health Center Cannabis Club HHC | Medical Marijuana Dispensaries In Oakland & San Jose
which you speak of is likely the largest dispensary in the world, and contributed over 1 million dollars in tax revenue to the city of San Francisco.
The tax burden that you speak of is due to a portion of the IRS tax code that says businesses that deal in controlled substances aren't allowed to deduct normal business expenses.
The result is that Harborside has been told that they can't deduct rent, wages, bills, and the many many other costs of doing business from what they declare as taxable profit.
This cripples any business' ability to function financially. It wasn't a matter of poor planning to pay the tax burden. The US Government pulled the rug out from beneath them.
Luckily Colorado Representative Polis with others has introduced legislation that would amend the tax code to allow for medical marijuana centers (what we call them in Colorado).
Toking And Taxes Don't Mix, Says IRS - Forbes
It's an attempt to undermine medical marijuana at the Federal level with underhanded leverage.DenverRelief Reviewed by DenverRelief on . the tax man hello. in a recent attempt to close a huge medical cannabis dispensary, the tax man came to collect more than a couple million dollars from back taxes. when said shop does revenue of 12 million dollars in one year, the tax burden appears huge, yet reasonable for doing business. the company not budgeting for these taxes, has left the business in precarious standing. is a bail out from donations in order to save this business, or is it better to fail them for mismanagement, and take the bad Rating: 5