Companies That Sell Federally Illegal Substances Like Marijuana Also Get Shafted Come Tax Time.

On Capitol Hill, cannabis remains a schedule I drug, meaning it’s illegal and is deemed to have no medical benefits. Being listed as a schedule I substance comes with a number of inherent disadvantages. For starters, weed businesses have very little or no access to basic banking services. Since financial institutions normally report to the Federal Deposit Insurance Corporation (FDIC), and the FDIC is a federally created entity, loaning money Medical marijuana to pot businesses or even opening a checking account for them could be construed as money laundering. If the federal government wanted to strictly enforce federal law at some point down the road, financial institutions that were caught offering basic banking services to cannabis businesses could face fines and/or criminal charges. Image source: Getty Images. Companies that sell federally illegal substances like marijuana also get shafted come tax time. U.S. tax code 280E disallows businesses that sell federally illegal substances from taking normal business deductions, which ultimately leaves these companies to pay far more in taxes than any normal business would.

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