here is nothing more boring than U.S. tax law.

But like many things at the pinnacle of tedium, marijuana is here is help—though technically, for those looking to deduct business expenses on their federal income taxes, it is here to hurt. A lot.

In 2004, Olive left college to start The Vapor Room, a medical marijuana dispensary in San Francisco serving local clients, including some with terminal illnesses. According to U.S. Tax Court documents, and Olive's own HIGH TIMES Interview back in 2007, The Vapor Room, legal under the California Compassionate Use Act of 1996, was a community-focused establishment.

Anyone was free to visit and use its vaporizers, games, books, art supplies or board games; participate in its yoga classes, therapist chair massages and movie nights; or partake in its complimentary food and beverages, without having to first buy its medical marijuana.

What Olive's establishment didn't offer, however, were expense receipts or permanent business records, which can prove particularly vexing when being audited by the IRS.

Though The Vapor Room experienced robust sales in its first two years—over $1 million in 2004 and over $3 million in 2005 by its own account—its high overhead costs meant it never broke......... http://www.hightimes.com/read/legal-not-taxed-equal-marijuana-providers-losing-fight-deduct-business-expenses

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