Part 4 of 5
One good tax opportunity marijuana retailers have is if there are ancillary businesses, such as counseling and caregiving services, they may be separated out. The will allow full deductions on the non marijuana related portions of the business. There was a 2007 tax court case, Californians Helping to Alleviate Medical Problems Inc. v. Commissioner, in which the U.S. Tax Court ruled that Section 280E didn't prevent a California organization providing medial marijuana from deducting expenses related to a separate part of the businesses (US Tax Court, Docket No. 20795-05).