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State Allowed Marijuana Activity: Do Regular Business Deduction Rules Apply ( or Those for Drug Dealers ) ( MO 3 . 1 ) Cole England
State Allowed Marijuana Activity: Do Regular Business Deduction Rules Apply or Those for Drug DealersMO Cole England operates Herbal Center in Sacramento, CA as a sole proprietorship. The distribution of marijuana for medical purposes as well as nonmedical use by adults is legal in CA This is Coles first year of business operations, and he reports the following tax information: Revenues $ Cost of Goods Sold $ Other Business Expenses $ Cole reported $ of net income on Schedule C this year for Herbal Center. Instructions: Is the net income figure of $ correct for federal income tax purposes? Why or why not? If not, what is the correct federal income tax net income figure? What is your opinion on the federal law regarding deducting expenses of this business Why do you agree or disagree with it Explain your response with two paragraphs of three to six sentences. In order to receive full credit, you MUST include a reference to the tax lawsInternal Revenue Code sections dealing with this issue.
State Allowed Marijuana Activity: Do Regular Business Deduction Rules Apply or Those for Drug DealersMO
Cole England operates Herbal Center in Sacramento, CA as a sole proprietorship. The distribution of marijuana for medical purposes as well as nonmedical use by adults is legal in CA
This is Coles first year of business operations, and he reports the following tax information:
Revenues $
Cost of Goods Sold $
Other Business Expenses $
Cole reported $ of net income on Schedule C this year for Herbal Center.
Instructions:
Is the net income figure of $ correct for federal income tax purposes? Why or why not? If not, what is the correct federal income tax net income figure?
What is your opinion on the federal law regarding deducting expenses of this business Why do you agree or disagree with it
Explain your response with two paragraphs of three to six sentences. In order to receive full credit, you MUST include a reference to the tax lawsInternal Revenue Code sections dealing with this issue.
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