Many states have legalized the sale of marijuana for personal and/or medical purposes. However, it is still a federal crime to sell marijuana in any of the 50 states, regardless of the state laws. Income from any and all sources, including illegal activities, is taxable at the federal level, including income from the sale of marijuana. 

What has the tax court ruled about tax deductions for business expenses for those engaged in the sale of marijuana?

Answer rating: 100% (QA)

Section 280E and The Taxation of Cannabis Businesses Section 280E of the Internal Revenue Code prohibits taxpayers who are engaged in the business of trafficking certain controlled substances includin... View the full answer