2018 is right around the corner, which also means tax season is nearly here. Over the next few months, Americans will be filing their tax returns for 2017 and hoping the new Republican plan doesn't cost them too dearly. But the most important question is whether or not you can deduct marijuana purchases from your taxes.
In this week's "Ask a Stoner" column on Westword, a reader who purchases marijuana for business and parties in Colorado asked if they could deduct those costs from their taxes. The answer is...no. At least federally. The IRS says it will not accept any marijuana-related deductions because the drug is still illegal at the federal level. In fact, marijuana businesses aren't allowed to claim any deductions whatsoever, meaning they're hit much harder than individuals. That policy could change in the future, as a Colorado dispensary has sued the IRS over it. But for now, marijuana deductions on your federal taxes will only bring you more headaches.
However, on the state level that is a different story. As Westword notes, the state of Colorado has a special deduction for taxpayers who purchase marijuana for business-related reasons. Oregon also has a similar deduction as well. So if you live in a state with recreational marijuana and you buy cannabis for business reasons, you should definitely look into your state's tax laws to determine whether or not you can save some money on them.