section 280E is a single sentence of the Internal Revenue Code. It states: “No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.” Section 280E http://www.cannalawblog.com/the-trouble-with-section-280e-and-marijuana-businesses/
The beauty of the #secondAmendment is you don't need it until they try to take it away ~TJefferson -Delusions of grandeur- the belief that you have an important mission, special purpose, or are an unrecognized genius, or famous person.
...illegal trafficking of drugs. DrugDealers are not allowed a deduction for ordinary and necessary business expenses incurred in their business. In arriving at gross income from the business dealers may reduce total sales by the cost of goods sold. (Gross income is defined as sales minus cost of goods sold.) In this regard no distinction is made between legal and illegal business in calculating gross income. Treating cost of goods sold as a negative income item rather than as a deduction item produces the unseemly result that a drug dealer's taxable income is reduced by cost of goods sold.
Textbook says.... Expenses Relating to an Illegal Business. The usual expenses of operating an illegal business (e.g. a numbers racket) are deductible. (Comm.v.Sullivan, 58-1 USTC 9368) ...However, #Section162 disallows a deduction for fines, bribes to public officials, illegal kickbacks, and other illegal payments.
#CostOfGoodsSold #BeginningInventory #Purchases
#guns #2A Antipsychotics PsychiatricDrugs ChemicalRestraints HypnoticSedatives illegalkickbacks #Tequila #Vodka
#Cigars #CigarClub #Coffee