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To make it worse, our Federal Tax Court has already ruled that deductions for anything from store rent to medical marijuana legally obtained for sale to patients in this state-sanctioned industry are not allowed. The IRS accomplishes this by incorporating the Controlled Substances Act of 1970, which designates marijuana as a Schedule I drug, with IRS Code Section 280E, which prohibits the deductibility of controlled substance expenditures. This helps them to rob these small business owners of any profit they make and drive them out of business. As a result, everyone in the medical marijuana industry who files a tax return in good faith becomes a sitting duck for anti-marijuana auditors.Checkout Cannabis store for more info.

Both federal laws must be abolished before these legal businessmen and women can compete equally. Until then, the state-legal medical marijuana industry will be forced to compete in the existing tax environment, where the IRS can wipe out any of a company’s earnings at any moment and the black market is actually better.

It’s clear that marijuana has medicinal value because the US Department of Health & Human Services holds patent #6630507 for the anti-oxidant properties of marijuana, and the US patent office has awarded marijuana patents to major pharmaceutical firms. It seems that the 1970 Schedule I drug label should be repealed, given the evidence of active medical use in Israel and other countries. But, unless the medical marijuana industry bands together and demands reform, it won’t happen anytime soon.

If farmers, dispensary operators, edible manufacturers, and patients don’t speak up now, they should expect issues to persist for years. Patients and business owners who use medical marijuana have only two options: they can continue to face prejudice because of their choice of herbal medication, or they can band together to amend the federal laws. If they take the first choice, they may as well shut their doors right now because taxes are going to put them out of business anyway; but, if they fight for the fair rights that they deserve as an industry, they will be able to achieve genuine business success and real income.