While most would assume the marijuana industry would fall under business rules, it is still illegal federally. What does that mean? Those tax cuts that traditional businesses know and love do not apply here.
With the legalization of recreational marijuana use in more states, that opens up more room for business. However, how can these businesses survive without the breaks that traditional businesses receive?
According to a recent article, marijuana businesses can see a federal tax reaching as high as a 90% tax rate! Where is the room for profit, if these businesses cannot write off their expenses or take advantage of traditional credits?
Things may change in the coming year, but tax season is looking grim within the industry for now.