On ADA anniversary, IRS highlights tax benefits to disabled
The IRS has issued following notice which highlights tax benefits and services provided for disabled individuals.
Pot Dealers deductions “up in smoke”
Most businesses are allowed to deduct the ordinary costs of doing business under IRC § 162. But marijuana dealers are only allowed to deduct expenses related to cost of goods sold. §280E prohibits the deduction for most business expenses for businesses that market a “controlled substance” under Federal law. In the Olive case, all business expenses were disallowed except for those relating to cost of goods sold. On the bright side, some pot advocates are pleased with the generous allowance made by the judge for cost of goods sold.
CA passes it’s first Earned Income Tax Credit.
Included in California’s 2015-2016 budget is it’s first ever EITC. Here is a snippet from the budget summary.
“The state’s first Earned Income Tax Credit will help the poorest working families
in California. This targeted credit provides a refundable tax credit totaling
$380 million for wages and focuses on the lowest‑income Californians — households
with incomes less than $6,580 if there are no dependents or $13,870 if there are
three or more dependents. The credit matches 85 percent of the federal credit at the
lowest income levels, with a maximum benefit of $2,653.”
Interestingly, for purposes of this bill, self employment income does not qualify as earned income so this only applies to employees.