Bill to Disallow Deductions for Marijuana Businesses is Introduced
Two Senators introduced a bill to disallow deductions even if marijuana is made legal
Two Republican Senators introduced a bill to prohibit most tax deductions for any marijuana business even if it is finally made legal at the federal level. Senators James Lankford (R-OK) and Pete Ricketts (R-NE) introduced Bill S. 471 earlier this month.
It is a short bill. It simply states that these businesses can’t deduct expenses related to marijuana sales. Under current Code Section 280E, a marijuana business is only allowed to deduct cost of goods sold.
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