Can You Write Off Medical Marijuana On Your Taxes?

[Michael Komorn]

Can You Write Off Medical Marijuana On Your Taxes?

 

FROM HUFFINGTON POST

 

 

 

 

It may be legal to purchase medical marijuana with a prescription in 14 states, but is that pot tax-deductible as a medical expense?

Generally, it has not been considered tax-deductible due to its illegality under federal law, which guides the Internal Revenue Service's policies.

But a recent letter from an IRS agent to one of Senator Chuck Schumer's constituents raised questions and sparked hope among medical marijuana advocates that the federal policy had changed.

In response to a question about whether an unspecified herb used to treat migraines can be considered a medical expense, the IRS agent issued three prerequisites that qualify the purchase of an herb as a medical expense, according to a blog post by Paul Caron, a law professor at the University of Cincinnati College of Law, published with help from Roger McEowen, an agricultural law professor at Iowa State University, on TaxProf.com.

Asked whether marijuana adheres to the IRS demands, Professor McEowen told Huffington Post, "Of course. It satisfies each demand and by horticultural definition, marijuana is an herb" but he emphasizes that the IRS created an exception in this case by excluding marijuana from becoming a medical expense.

Though the letter seems to indicate an opening for the tax-deductible status of pot, an IRS revenue ruling from 1997 makes this most recent development a moot point. The ruling (Rev. Rul. 97-9) states: "An amount paid to obtain a controlled substance (such as marijuana) for medical purposes, in violation of federal law, is not a deductible expense for medical care under § 213. This holding applies even if the state law requires a prescription of a physician to obtain and use the controlled substance and the taxpayer obtains a prescription."

While federal taxation seems unavoidable under that ruling, the lack of tax-deductible status for medical marijuana on state taxes is sure to face some scrutiny.

 

 

Michael A. Komorn

Attorney and Counselor

Law Office of Michael A. Komorn

3000 Town Center, Suite, 1800

Southfield, MI 48075

800-656-3557 (Toll Free)

248-351-2200 (Office)

248-357-2550 (Phone)

248-351-2211 (Fax)

Email: michael@komornlaw.com

Website: www.komornlaw.com

Check out our Radio show:

http://www.blogtalkradio.com/planetgreentrees

NEW CALL IN NUMBER: (347) 326-9626

Live Every Wednesday 8-9:30 p.m.

PLANET GREENTREES

w/ Attorney Michael Komorn

 

The most relevant radio talk show for the Michigan Medical Marijuana Community. PERIOD.

 

If you have a medical marihuana question or comment, please email them to me, or leave them on the forum for the MMMA, and I will try to answer them live on the air.

 

http://www.blogtalkradio.com/planetgreentrees

PLANET GREENTREES Call-in Number: (347) 326-9626

Call-in Number: (347) 326-9626

[Greg Starks]

It may be deductible from state and local taxation, though, since it is legal here.

 

Also, caregivers should probably be remitting use taxes to the state, as per this great chart, see the top of page 8. People would be wise to start taking this stuff seriously.

 

http://www.michigan.gov/documents/taxes/SSTTaxabilityMatrix_264858_7.pdf

[bobandtorey]

if i was a caregiver i would pay tax for sure i would not want the IRS in my business

[Dman]

I have a ton of medical bills. I also pay an accountant every year to do my taxes. I have never been able to write off any medical expense. None of these are life threatening or full disabling conditions. That might be a reason I can't. But I sure have crazy $$$$$$$ bills.

[MiB]

dman i respectfully submit that you look for another tax preparer.

[+420Atheist]

This is not the first time this subject has come up. I will say the same thing I said then. Just ask Al Capone what happens when you don't pay your taxes.