IRS Updates Marijuana Industry FAQ on Expense Deductibility

Recreational and medical marijuana legalization is on the ballot in several states this November. With legalization, states have adjusted their tax codes to promote the marijuana industry. The Federal government has not. Yet.

While we wait, the IRS has published a brief FAQ on Federal tax rules affecting the industry - cost of goods sold are deductible, other expenses are not, reporting requirements for cash payments received, estimated tax payments and more.

Marijuana Industry Frequently Asked Questions | Internal Revenue Service (irs.gov)