California’s Weed Businesses Can Deduct Expenses Under New Law

Beginning next year, California’s marijuana businesses will be able to deduct their expenses from state income taxes the same way other partnerships and sole proprietors do. It’s a game changer for many businesses at a tax disadvantage because of the treatment of cannabis enterprises under both state and federal tax law.

AB 37 was authored by Assemblyman Reggie Jones-Sawyer and signed by Gov. Gavin Newsom. A previous attempt was vetoed by Jerry Brown.

AB 37 affects state income deductions only. Marijuana businesses remain unable to take federal tax deductions due to cannabis’ illegal status under federal law.

Read more at Marijuana Businesses Daily


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Monday, July 13, 2020 - 07:07

The California Department of Tax and Fee Administration (CDTFA) has served tax warrants on a dozen illicit cannabis businesses operating illegally in Southern California.