USA TODAY: …Then, in 1982, Congress amended the U.S. tax code to include 280E, which says businesses selling a Schedule I or II drug — like marijuana, heroin, methamphetamine or cocaine — cannot deduct all of their regular business expenses.
The rule means that the “costs of the product,” like the soil and fertilizer used to grow plants, are deductible. But the “costs of selling,” like advertising, rent and utilities — even salaries for employees — are not deductible…
Since Oct. 1, nearly 100 new cannabis companies got licenses to operate in Colorado and will no longer have to grow the products they sell. But without growing, many may soon find that they will have very few, if any, business deductions when filing federal taxes in April… (more)
