Buffalo’s first cannabis dispensary gets ready forfirst federal tax filing – Spectrum News

BUFFALO, N.Y. — Dank, the city of Buffalo’s first cannabis dispensary, has been open for less than a year.

While owner Aaron Van Camp said the business has been lucrative so far, by April 15 he expects to give back a significant sum to the federal government when he files his income tax return.

“We’re capped at what we can have in the bank and we don’t anticipate that account having enough to pay what we’re going to owe, the number’s so great so we’re actually setting up another account with a courier to work it out so we can pay the crazy amount that we’ll owe them,” Van Camp said.

New York’s cannabis industry is expecting to pay much more in federal taxes than other small businesses because, while legal in the state, it remains federally illegal. As a result, Section 280E of the tax code severely limits what businesses can deduct from their-taxable income.

“We’re basically trying to file extremely conservatively for what we could. Like everything that we’re doing pretty much isn’t even going to audit. We’re filing as a C-Corp and we want everything to go smooth,” Van Camp said.

He said he is continuing to use his

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