bobm
Garden Master
On a recent tax audit ... a couple with healthy incomes decided to grow mary wanna as a business on their 7 acre property . They invested about $100,000 per year for 3 years on new greenhouse buildings, as well as on growing equipment, lighting, irrigation equipment, etc. etc. . They had NO sales during those years. This couple claimed their investments were start up costs and they claimed them as such. Their tax preparer did not question them nor offer any advice during the preparation of their tax returns... just garbage in, garbage out. Since it is illegal to grow and sell mary wanna as US law ... so , they can NOT claim their investments as start up costs for the years they were claimed. Also, since they had NO SALES for those years, their venture does NOT QUALIFY AS A BUSINESS . They left their tax audit with about just under six figure tax bill.