North American Cannabis Holdings Inc (USMJ)

[PRmaniac]

Maybe IRS found out that USMJ has been leasing grow operations and USMJ is now trying to get out fast.

Remember, any business associated with Cannabis like USMJ can take no business tax deductions like normal businesses can take.

This may be why USMJ was purposely hiding (in their financials) where any of their revenue was coming from, especially the leased grow ops?

The tipline is a useful tool for those concerned.

As a general rule, to calculate federal taxable income, businesses are allowed to deduct ordinary and necessary expenses paid or incurred in carrying on the trade or business, except that they may not deduct specific kinds of illegal payments such as illegal bribes or kickbacks. IRC Section 280E provides an even broader restriction and prohibits deductions for expenses incurred as part of a business consisting of trafficking schedule I or II controlled substances, even if those business expenses are otherwise lawful. For example, rents, salaries, telephone, and transportation expenses are not deductible to businesses trafficking in controlled substances but would be deductible for other types of businesses.