You are the owner and operator of a business that sells marijuana in Colorado. Your business is legal under Colorado law. Since the business activity is not legal under federal law do you need to report the business income on your federal tax return? If so, are there any expenses you can deduct against that income and what expenses are disallowed because of the nature of the business? Briefly explain the treatment of income from a marijuana business under Colorado tax law. Would you have any concerns where the federal return asks you to list the type of business and the merchandise it sells?