The Resource Obstacles to legalizing marijuana : resolving the federal-state conflict

Obstacles to legalizing marijuana : resolving the federal-state conflict

Label
Obstacles to legalizing marijuana : resolving the federal-state conflict
Title
Obstacles to legalizing marijuana : resolving the federal-state conflict
Creator
Subject
Language
eng
Summary
Beginning on 1 january 2014, recreational marijuana could be legally sold in Colorado. In July 2014, licensed retail marijuana outlets began opening to the public in Washington. In November 2014, voters in Alaska, Oregon, and the District of Columbia enacted regulations on the licensed production and sale of cannabis. Moreover, 23 states plus the District of Columbia have legalized the use of medical marijuana. Acknowledging these current developments, the IRS Advisory Council 2014 Public Report recommended that a tax professional should not be considered unethical, targeted for audit, or found to be in violation of Circular 230 solely for representing or preparing a tax return for a marijuana business, which is illegal under federal law. Regardless of the marijuana legalization trend at the state level, the federal law (e.g., the Controlled Substances Act of 1970) does not allow any trade or business trafficking in either medical or recreational marijuana. Section 280E, which was added in 1982, disallows deductions related to marijuana trafficking for federal income tax purposes. The conflict between federal and state laws may raise federal tax issues that will become more acute to the public, especially in states where the use of marijuana is legalized. This article reviews several areas of tax law that result in unfavourable situations for taxpayers that may improve once marijuana is legalized at the federal level. It addresses issues related to marijuana in general and medical marijuana. Depending on Congress' treatment of the proposed bills, this analysis may apply to the use of marijuana in general or to only medical use
Citation source
In: Practical tax strategies. - New York. - Vol. 95 (2015),
http://library.link/vocab/creatorName
Chiang, W-C
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • illegal activity
  • federal tax
  • state tax
  • exemption
  • deductions
  • expenses
  • self-employment
  • inheritance tax
  • case law
Label
Obstacles to legalizing marijuana : resolving the federal-state conflict
Instantiates
Publication
Label
Obstacles to legalizing marijuana : resolving the federal-state conflict
Publication

Library Locations

    • IBFD Library AmsterdamBorrow it
      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.37366609999999 4.9336932
Processing Feedback ...