3 Top Pot Stocks to Watch in September
Cannabis stocks rallied last week after the U.S. Department of Health and Human Services (HHS) confirmed that it recommended that the Drug Enforcement Administration (DEA) lower the federal classification of cannabis from a Schedule I drug to Schedule III.
By the government's definition, Schedule I is the classification for drugs that are deemed to have no currently accepted medical use and are also highly susceptible to being abused -- drugs such as heroin and fentanyl. The proposed move would recategorize cannabis into the group that includes Tylenol with codeine, ketamine, and testosterone -- drugs that are viewed to have medical uses and only a low to moderate potential for causing addiction.
That would open the door to marijuana being decriminalized at a federal level, which would be huge for cannabis companies. Just one example of the change's impact relates to the U.S. tax code. The code currently prevents cannabis companies from deducting typical business expenses because they are connected to the sale of a Schedule I or Schedule II controlled substance. Placing marijuana on the Schedule III list would mean those deductions would be allowed. That change alone would help many more cannabis companies reach profitability.
Source Fool.com
