Feds Say Cannabis is Not Medicine While Holding Patent on Plant as Medicine

Patent

Emmy winning independent journalist Ben Swann released a video detailing the hypocrisy of the federal government holding patents on medical marijuana, and the health benefits of CBD oil.  It is a well done piece, if not a little sensational, but only highlights one of many issues that contradict each other in the industry.

While the video calls attention to the fact that our tax dollars are funding patents on medical cannabis despite it being illegal, there are other issues it does not address and they are ones that form a pattern. Under Section 280e of the Internal Revenue Code, businesses that grow and sell marijuana are prohibited from deducting legal and ordinary business expenses, but permitted to deduct the illegal cost of goods sold for the purpose of calculating tax liability.

The IRS and Federal Government require businesses to pay tax on the marijuana they sell but forbid those businesses to deposit their cash in banks to facilitate those payments … so those very same businesses are showing up in the offices of tax collectors with bags of cash and subjecting themselves and the community to violent criminal activity in the process.

The video was done through a crowdfunding platform and at the end solicits donations so please be advised that we are not advocating donations or promoting for them, but it is hard to argue the facts and the premise.

David Friedman is the CEO of Panther Capital and the Panther Funds. He is the founder of the Institute for Cannabis Economics and former CEO of MJIC, Inc. An accounting and finance professional his experience cuts across multiple industries and ranges from startups to running a billion-dollar family office. He can be reached at david@panthercptl.com

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