Harborside<\/a> argued that it\u2019s dispensary had a separate business of selling products that do not contain marijuana such as clothing, paraphernalia, and books about marijuana. In finding that the dispensary had only a single business of selling marijuana, the court noted that non-marijuana sales accounted for only .5% (point-five-percent) of the dispensary\u2019s total revenue. Furthermore, the dispensary\u2019s employees spent only 5-10% of their time selling non-marijuana items, the nonmarijuana items occupied only 25% of the floor space, and only clients who passed security to buy marijuana had access to nonmarijuana items. <\/p>\n\n\n\nAs is evident, courts are skeptical of the argument that a marijuana dispensary is engaged in two separate trades or businesses. That argument is less likely to be successful when the two businesses share employees, floor space, management, books, and a business entity. Moreover, when revenue is predominantly generated from the sale of marijuana, courts seem to view the alleged separate business as sharing a close and inseparable organization and economic relationship with the primary business of selling marijuana.<\/p>\n","protected":false},"excerpt":{"rendered":"
Can Your Cannabis Business Deduct Non-Marijuana Sales Like Merchandise, Books, and Pipes? Jin KimLaw Office of Jin KimFree Consultation(916) 299-9913 Following the CHAMP court\u2019s reasoning and an analogy in Olive that illustrates how a free service isn\u2019t a separate trade or business, but one which charges may be, you would think that a marijuana dispensary\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":9,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"featured_image_src":null,"featured_image_src_square":null,"_links":{"self":[{"href":"https:\/\/cannabistaxattorney.us\/wp-json\/wp\/v2\/pages\/67"}],"collection":[{"href":"https:\/\/cannabistaxattorney.us\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/cannabistaxattorney.us\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/cannabistaxattorney.us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabistaxattorney.us\/wp-json\/wp\/v2\/comments?post=67"}],"version-history":[{"count":4,"href":"https:\/\/cannabistaxattorney.us\/wp-json\/wp\/v2\/pages\/67\/revisions"}],"predecessor-version":[{"id":324,"href":"https:\/\/cannabistaxattorney.us\/wp-json\/wp\/v2\/pages\/67\/revisions\/324"}],"up":[{"embeddable":true,"href":"https:\/\/cannabistaxattorney.us\/wp-json\/wp\/v2\/pages\/9"}],"wp:attachment":[{"href":"https:\/\/cannabistaxattorney.us\/wp-json\/wp\/v2\/media?parent=67"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}