Westword
Audio By Carbonatix
Dear Stoner: I buy marijuana products for my job and the parties I host. Am I allowed to deduct them on my tax returns? I have the receipts.
Pluto
Dear Pluto: I’m a Stoner, not an accountant, but I don’t think it’s smart to alert Uncle Sam to your federally illegal habits. Because of pot’s status as a Schedule I substance, cannabis purchases cannot be claimed on your federal taxes; dispensaries are hit by the prohibition even harder, since they’re unable to claim standard business deductions. The IRS has repeatedly stated that it won’t accept any cannabis-related deductions, and it’s currently defending that stance in federal court against claims from owners of a Palisade dispensary.
Shutterstock.com/karen roach
The State of Colorado is a different story. Because cannabis is legal here, you can claim your cannabis business purchases as deductions on your state taxes. The Colorado Department of Revenue even has a special deduction form for licensed cannabis businesses, so it’s fully aware that there are jobs that require pot expenses. Even so, that’s a lot of work for you to get a relatively small deduction, and it’s still not exactly something you can put in TurboTax. If you don’t own the business and you work for a pot-related company, why not just file an expense report?
Have a question for our Stoner? E-mail marijuana@westword.com.
We’re thankful for you. Are you thankful for us?
We feel thankful for our staff and for the privilege of fulfilling our mission to be an unparalleled source of information and insight in Denver. We’re aiming to raise $50,000 by December 31, so we can continue covering what matters most to this community.
Help us continue giving back to Denver.
