August 1, 1997

No Marijuana Deduction

          They used it at Woodstock. Bill didn`t inhale it, and now the IRS says you cannot deduct it. The IRS ruled that an amount paid to obtain marijuana for medical purposes is not a deductible medical expense even if the marijuana was obtained with a prescription issued by a physician in accordance with state law.    

          The IRS said that because marijuana was tested as a controlled substance on schedule I of the Federal Controlled Substances Act-which supersedes the state`s authority-it was not "legally procured" and the taxpayer could not deduct as a medical expense the amount paid to purchase it.

          This ruling also makes obsolete, Revenue Ruling 78-325 which held that payments for laetrile for the purposes of treating cancer related illnesses were deductible under Section 213 when purchased and used in a locality where it was legal.

 Tax Code Simplification?

Number of Words

1964 -234,746
1993 -771,632

Keeping Current

          In our continuing attempt to stay abreast of changing laws and regulations Howard Lisch has recently attended the following courses: Advanced Techniques in Charitable Gift Giving The Internal Revenue Service and the New Jersey Division of Taxation Coordinated Attorney/Accountant Income Tax Compliance Programs. Annual National Association of Securities Dealers Compliance Seminar Howard Lisch Financial Planning Services underwent its annual audit mandated by the National Association of Securities Dealers and passed.

New Service Offered!

          Howard Lisch recently passed a week long insurance course on his way to passing the New York State Insurance Exam for Life Insurance. He will now be able to provide life insurance and annuities.

          If you have any questions about this or any other financial matters, please call me.