YardG
Well-Known Member
Hello, I know I should be asking a taxpro about this, and not "the internet" but I reckoned there might be some licensed US cultivators on here who might be able to answer something for me...
I had always thought legal cannabis businesses couldn't deduct business expenses from their federal (and in many cases state) taxes, because duh illegal on the federal level, but I was looking up the particulars of my state and came across a JSTOR (a database of academic journals) article about how the costs of producing the product you sell may be deductible, i.e. the expenses incurred in actually cultivating the flower may be deductible.
Anyone have any insights on that? Can cultivators take deductions for growing-related business expenses out of their business' income for tax purposes? I would have to declare the income regardless, so being able to deduct expenses for grow media etc would be very nice.
I had always thought legal cannabis businesses couldn't deduct business expenses from their federal (and in many cases state) taxes, because duh illegal on the federal level, but I was looking up the particulars of my state and came across a JSTOR (a database of academic journals) article about how the costs of producing the product you sell may be deductible, i.e. the expenses incurred in actually cultivating the flower may be deductible.
Anyone have any insights on that? Can cultivators take deductions for growing-related business expenses out of their business' income for tax purposes? I would have to declare the income regardless, so being able to deduct expenses for grow media etc would be very nice.