Starting the Colorado and Washington in 2012, marijuana has taken the country by storm and it is now legalized in 10 states over the past 6 years.
Medical marijuana laws are in effect in most states, and the industry has growing support across both sides of the political spectrum.
Still, there are federal challenges for the industry, and if you are a operating a marijuana farm in a state like Washington or Colorado - you’re prohibited from deducting many expenses.
Expenses like technology, legal fees, wages, rent, fuel, vehicle, costs, etc. None of them can be deducted, and that is a serious problem for business owners.
Marijuana businesses can still deduct the COGS, like soil, water, nutrients, wages, etc.
Due to the complexity of the tax laws and cannabis industry, it is recommended you consult with an experienced tax attorney.