- Associated Press - Thursday, July 9, 2015

SAN FRANCISCO (AP) - A federal appeals court says California medical marijuana dispensaries can’t deduct business expenses from their taxes.

That’s because pot is illegal under federal law.

The San Francisco Chronicle (https://bit.ly/1UHn0QP ) calls Thursday’s decision a financial setback for pot shops, which have flourished since California voters legalized use of pot for medical purposes.

The case involved a San Francisco dispensary called the Vapor Room that was shut down three years ago under pressure from the U.S. attorney.

Owner Martin Olive claimed $650,000 in business expenses on 2004 and 2005 federal income tax returns but the IRS rejected them.

The Ninth U.S. Circuit Court of Appeals upheld that decision. It said federal law denies expense deductions involving traffic in controlled substances.

Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times is switching its third-party commenting system from Disqus to Spot.IM. You will need to either create an account with Spot.im or if you wish to use your Disqus account look under the Conversation for the link "Have a Disqus Account?". Please read our Comment Policy before commenting.

 

Click to Read More

Click to Hide