Shareholders in a state-legal medical marijuana business in Colorado failed to convince a federal appeals court to let them claim certain tax deductions that aren’t allowed for businesses that sell federally illegal drugs.
A Feb. 26 ruling by the U.S. Court of Appeals for the 10th Circuit is the latest in a string of losses for marijuana-related businesses seeking to take advantage of business expense deductions companies can normally enjoy. Tax Code Section 280E prohibits deductions for businesses engaged in unlawful trafficking of controlled substances.
In the case in question, the Internal Revenue Service disallowed deductions sought by three shareholders ...
Learn more about Bloomberg Tax or Log In to keep reading:
Learn About Bloomberg Tax
From research to software to news, find what you need to stay ahead.
Already a subscriber?
Log in to keep reading or access research tools.