There’s been a lot of progress in the way people in the US think about cannabis and its uses. As of January 1, 2020, recreational use by adults is legal in 11 states and medical use is legal in 33 states.
At the federal level, though, cannabis is still what’s known as a controlled substance, which is an important distinction for accounting and tax purposes. If you own a dispensary, federal tax codes will apply differently to you than to other types of businesses. One tax law that’s particularly important to know is 26 U.S. Code Section 280E, “Expenditures in connection with the illegal sale of drugs.”
But wait…if you’re a licensed dispensary owner, you’re not selling drugs illegally. So why does that statute apply to you?
Are you looking for a way to diversify your IRA? While stocks and bonds are popular investments, you might consider investing in real estate to generate extra income. Many individuals view real estate as an intelligent, long-term investment that protects portfolios against market volatility and inflation.
It’s a great time to get into the cannabis market. The industry is expected to see more than 18% overall growth in the next seven years and North America holds the biggest market share at 88%. In the US alone, more and more states are making recreational cannabis use legal, and that means more business opportunities than ever.