It’s not legalized on the Federal side.
So the Feds recognize no deductions on federal income tax returns.
So gross sales = net taxable sales with no offsets.
So still way better to be illegal.
“So still way better to be illegal.”
Many don’t like the risk of being illegal and they make huge money too. I have a friend in a suburb of Denver whose rental house is in an area approved for pot shops. Some legal operators came to him and asked to rent the house for a pot store. He said, “How much can you pay?”
They said: We’ll pay triple whatever you are getting now, show us your lease. That’s up and running and now they want to buy his small warehouse next door for a grow spot. I was his Realtor when he bought it 20 years ago for $115k. He’s selling it to them for $1.4MM. He has to carry it since they can’t get financing. They are giving him $400k down, he carries the million.