Posted on March 7, 2013 by CPAsteve
CNN recently reported on how the Federal government is cracking down on the California Pot industry.
More and more states are legalizing the use of pot. I?ve even had a few people approach me about what might be involved in setting up a legitimate pot growing business in New Hampshire.
For one, it?s against the law in New Hampshire. But the big problem, if you? go and set yourself up in a ?legitimate? state, is that it is still against Federal law.
Let me explain why this is? a problem for taxes.? Some might assume (what?s the big deal) that I?ll just set up my business? and make sure I pay my taxes..Simple enough?
Here?s the problem. Although you are required to report your income from whatever source, you are NOT entitled to take a single dollar of deduction against that income if the business is illegal.
So, if you had a pot growing business with $300,000 of gross sales, and you had $200,000 of expenses associated with it, you would have to pay taxes on the whole $300,000.
?and now you know?
Presented by Steven A Feinberg, CPA of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in tax, payroll and business planning for his clients throughout the year. Steve is a recognized member-contributor of the book, Six Steps to Small Business Success. For additional information, you are encouraged to email Steve at [email?protected] or call (603) 434-2775.
Steven A. Feinberg ? www.AppletreeBusiness.com ? Get Appletree Blog via Email ? Follow CPAsteve on Twitter
Filed under: Uncategorized Tagged: | Business, Business Profits Tax, marijuana, Small Business, tax deduction
Source: http://blog.appletreebusiness.com/2013/03/07/taxes-and-marijuana-oh-my/
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