TCNNF - IRS Confirms No Federal Tax Deductions For Marijuana Businesses Until Rescheduling Is Finalized | Benzinga
On Friday, the Internal Revenue Service (IRS) issued a reminder that marijuana remains classified as a Schedule I controlled substance and is thus subject to the limitations of the Internal Revenue Code, specifically Section 280E.
Current Tax Rules Remain Unchanged
In a press release, the IRS stated: "Until a final federal rule is published, the Internal Revenue Service today reminded taxpayers that marijuana remains a Schedule I controlled substance and is subject to the limitations of Internal Revenue Code."
Section 280E disallows all deductions or credits for any amount paid or incurred in operating a business that involves the illegal trafficking of Schedule I or II controlled substances, which includes marijuana under federal law. This applies even to businesses in states where marijuana sales are legal.
This clarification comes ...