How Does Caregiver Income Get Taxed?

[pergamum362]

This topic should be edited. Just my thoughts...google took me here.

[motorcitymeds]

 

Has there been a ruling related to caregivers in mmj states? Or is it just the blanket "fed law trumps state law"?

 

If that's the case, should caregivers only use home-based biz designation on state returns and not federal?

 

Potential Catch-22. Gotta report the income, but if you don't, well, we know the answer to that one lol

You do have to claim income...however I advise using a MJ friendly accountant.  Otherwise shiet is going to get all fuxed up.

[free420country]

I cant belive how you make so much money you had to pay taxs.......you only supposed to cover the costs and thats not how most cgs work and thats not right

[motorcitymeds]

I cant belive how you make so much money you had to pay taxs.......you only supposed to cover the costs and thats not how most cgs work and thats not right

I am confused sir..?  Are you stating that in order to be  a Cg and provide Triple AAA meds you must be poor..?  I used to say and still believe this that until it is regulated and taxed why report all the money a CG makes..?  It does not state in the law that you have to be poor and what not to be a CG.

 

I believe you do have to claim some income though. 

 

In fact to have a decent Medical grow requires an initial buy in of roughly 10-20k.  And this is just to have proper equipment, installation, genetics.  ...etc.  Then you have taxes, labor, and all that.  So to be a TRUE PROFESSIONAL CAREGIVER is not a occupation that you can do full time with a 250.00 initial investment.  This is not Amway or mannatech sales.  To produce you have to have a good space that has humidity, AC and heat controls.  You have to have skill in botany or growing experience.  So how does one become a CG..?  It has costs just like it costs to be college educated or to be a Union Electrician or any other trade.  There are costs involved with it.  i did not have anybody buy be equipment or hand over a genetics treasure trove.  It took years to get set up.  And luckily I was ready to go off the get go and put in coountless man hours.  There has to be compensation/profit if you want to call it that.  Or nobody would do this.  If CG's ran deficits nobody would do this.  It is to high a risk not to be compensated.

 

Let us ask a nurse or doctor to be just compensated and not actually break profit.  If there was only compensation likie food renumeration for work that would be communist RUSSIA  and the collective system failed.  Democracy is based of exploitation from the top down. It just is what exists in our country.  If there was no profit nobody would even grow MED MJ.  Only a few would trade for it because the rest would say umm..NO I will go do something else and get good at it so people will pay me for my time.

 

 

It is what it is. People get arrested and have their lives destroyed to provide medicine.  So your right my friend call it what you want.....it is what it is. 

 

If your hating someone for earning a living and providing quality of life improvements to patients that is WRONG SIR.  As much as I hate pill companies like MERCK  there is people making profit and making a living working in those pill factories that make pills that actually help people.  You don't see me hating on people trying to make a living while helping other people.  I hate on Greedy shady fuxs with alterior motives.

 

There is absolutely nothing wrong with earning a living sir.

Edited September 14, 2013 by motorcitymeds

[Celliach]

  I used to say and still believe this that until it is regulated and taxed why report all the money a CG makes..? 

 

Why? Because you can go to jail for tax evasion.

 

10 - 20K for start-up!!!!!!  That's crazy!!!!!  I can get someone started growing quality meds for $250.  You just went about it the wrong way and never figured out the cheap way of doing things.  I've spent 20 years trying to figure out how to make growing cheaper without losing any quality.  You're not going to grow a quantity to supply anyone but yourself, but you can grow quality weed for $250, and you don't need any initial skill.  That comes over time.  That's why the KISS method was developed.  To give starting growers a perfect crop the first time if they follow the simple directions.

 

It's really too bad that you didn't do more homework on your start-up.  You could have saved thousands of dollars.  I've been growing fro 20 years and I'm willing to bet in those 20 years I still haven't spent $20k.

 

To compare CGs to doctors or nurses that actually have to go to school for years to learn their trade is, at best, disingenuous. 

 

...and you're right.  There's nothing wrong with making a little profit.  If you're doing everything legal, just selling to 5 registered patients.  Then this is a really good part-time job.

[motorcitymeds]

Why? Because you can go to jail for tax evasion.

 

10 - 20K for start-up!!!!!!  That's crazy!!!!!  I can get someone started growing quality meds for $250.  You just went about it the wrong way and never figured out the cheap way of doing things.  I've spent 20 years trying to figure out how to make growing cheaper without losing any quality.  You're not going to grow a quantity to supply anyone but yourself, but you can grow quality weed for $250, and you don't need any initial skill.  That comes over time.  That's why the KISS method was developed.  To give starting growers a perfect crop the first time if they follow the simple directions.

 

It's really too bad that you didn't do more homework on your start-up.  You could have saved thousands of dollars.  I've been growing fro 20 years and I'm willing to bet in those 20 years I still haven't spent $20k.

 

To compare CGs to doctors or nurses that actually have to go to school for years to learn their trade is, at best, disingenuous. 

 

...and you're right.  There's nothing wrong with making a little profit.  If you're doing everything legal, just selling to 5 registered patients.  Then this is a really good part-time job.

As always Cell your right Brolo...i bow down to your wisdom. And no with a 250 initial investment your looking at a 400 or 600 watter and some conatinars maybe a bag of happy frog and some Tiger Bloom.  LOL.  If your happy with a first time patient grow then.. kudos to you.  This example you layed out is purely an ENTRY LEVEL SET UP.  NOTHING MORE.

 

I spent 5 years constantly spending every penny to expand. And i am just going to agree to disagree.  On your first grow your not even a grower. 

 

That would be a intern at best.  In the medical field...actually no just a student.

 

 

Celliach....is there anything you agree with besides your own comments..? I know your king of the U.P. and all but come on man...

 

On a first grow that is not even considered MED MJ.  To be considered a professional CG you need to have environmental controls, ELITE genetics, years of scholing in the industry and use cutting edge organic methods...etc...etc.

 

btw....CELLIACH...IF YOU WANT TO BE A PROFESSIONAL CAREGIVER YOU NEED TO DO THE ABOVE THAT I MENTIONED.  YOUR NOT GOING TO BE A PROFESSIONAL CG RUNNING A ROOM ON 25 WATTER CFL'S, WITH NO ENVIRONMENTAL CONTROLS, ETC, ETC.  THAT WOULD MAKE THAT PERSON THE HOBBYIST OR PERSONAL GROWER.

Edited September 14, 2013 by motorcitymeds

[free420country]

Sorry grandma

Edited September 15, 2013 by free420country

[free420country]

Rant

Edited September 15, 2013 by free420country

[free420country]

Rant

Edited September 15, 2013 by free420country

[motorcitymeds]

No im saying making a living off 5 people seems like its not very compasionate..I feel like anyone that is making enough moneyto have to pay taxs on it is probly not working within the law.

 

And theres no reason to put 20000 into a grow unless all you want to do is make a sht load of money and charge poor grandma 350 a zip.cause you can start a good grow for a few people for around 300 bucks or less and supply plenty

i was going to attempt to reply to your reply..but dude you brought GRANDMA into this so well I am not even going to try.   SMH.  WTF,,...LOL.

 

Really,...REAAALLY......wow.

[mibrains]

Tax code states you have to report EVERY PENNY.

 

every single cent that changes hands MUST be accounted for.

 

what matters is how many things you can write off at the end of the quarter or year depending.. (self employment income is supposed to be reported quarterly).

 

expenses minus income equals profit.

 

if you spend more than you charge you are not making profit. 

 

understand the Gov does not care how you define profit... they INSIST you report every penny and then they will decide how much to take from you.

 

in the case of the federal government you cannot claim and thereby write off any expenses... also you cannot claim the income from illegal drug sales.. so its a loose loose scenario when it comes to the federal tax code..

 

truthfully I still have not heard a satisfactory answer on how to deal with all the confusion between a state legal commodity while remaining federally illegal..

 

no clue...

[mibrains]

 

[edawg]

We claim the minimum amount on our taxes. For ex, if we used the monies on elec. bill, cell phone bill, etc, we would total up all the money we used for legitimate bills and claim that much.  This money is then filed under side jobs on our tax return.  All of the other cash goes to things like gas, nutrients, soil, food, beer and mums the word,  

Edited September 15, 2013 by edawg

[mibrains]

We claim the minimum amount on our taxes. For ex, if we used the monies on elec. bill, cell phone bill, etc, we would total up all the money we used for legitimate bills and claim that much.  This money is then filed under side jobs on our tax return.  All of the other cash goes to things like gas, nutrients, soil, food, beer and mums the word,  

 

no offense meant..

 

but I am not sure its wise to post something like this in an open forum..

 

I saw some others have said very similar things in this thread along the way so please don't think I am picking on you specifically. 

I am merely trying to make a point about self saftey..

 

a self incriminating statement to illegal activities such as this one might be enough to have someone request an audit.

 

do they do that? 

I doubt it... however as jim says (phaquetoo) "loose lips sink ships"

 

the Tax code is very clear about reporting cash income.

[free420country]

Sorry grandma

[pergamum362]

Thats the part i didnt understand. Filing federally? Id be more than happy to file some taxes, put more money into my bank account, maybe pay into social security. Theyll get there share one way or another eh? Lol

[phaquetoo]

I worked for my self my whole adult life! I did alot of work for big bussinesses, hospitals, prisons, postal offices, ins company's large owners of higher grade apt property's, they all sent me a 1099, acept one yr one of the companys didnt send my one, so I didnt claim it, 2 yrs later the feds sent me a letter saying I didnt pay on such and such income that was reported to them but not me, now I know better, It is my job to keep track of my income being self employed, no one has to send me a 1099 but they do have to send a copy to the irs, trust me I didnt go to my book keeper when they said I owe this much from 2 yrs ago, I wrote a check and paid it, all was good!

 

I also did alot of work on peoples homes that were big contractors for some of the other work I was doing, they paid me in cash, they didnt want a reciept, so id have to say if a pt is not claiming they purchased said amount of mm for 5k a yr, the supplier has no need to worry about it,

 

its a catch 22, you know you dont want to claim taxes federaly mmj is not legal federaly, if something happens down the road I can only see them saying you owe this much plus interest, but I truly dont see that happening,  But I do see despenses and f.m's or what ever they are going to call them paying state and possibly fed taxes, They got capone on tax evasion, im thinking feds are not going to capone all of the c.g's

 

when they pass an initative to have supply chains, they will be paying taxes, unless they can prove it is a non profit!

 

In the law now it says you can be compensated for materials and time spent on the garden, it says nothing about paying state taxes!

 

any one that spends 20k start up a grow room is obviously not just supplying their 5 pts and them selves!  so no matter what that type of farmer does it is not going to save em when the walls come tumbling down!

 

when the walls come tumblin tumblin ,,,,that reminded me of a song!

 

Peace

[motorcitymeds]

I worked for my self my whole adult life! I did alot of work for big bussinesses, hospitals, prisons, postal offices, ins company's large owners of higher grade apt property's, they all sent me a 1099, acept one yr one of the companys didnt send my one, so I didnt claim it, 2 yrs later the feds sent me a letter saying I didnt pay on such and such income that was reported to them but not me, now I know better, It is my job to keep track of my income being self employed, no one has to send me a 1099 but they do have to send a copy to the irs, trust me I didnt go to my book keeper when they said I owe this much from 2 yrs ago, I wrote a check and paid it, all was good!

 

I also did alot of work on peoples homes that were big contractors for some of the other work I was doing, they paid me in cash, they didnt want a reciept, so id have to say if a pt is not claiming they purchased said amount of mm for 5k a yr, the supplier has no need to worry about it,

 

its a catch 22, you know you dont want to claim taxes federaly mmj is not legal federaly, if something happens down the road I can only see them saying you owe this much plus interest, but I truly dont see that happening,  But I do see despenses and f.m's or what ever they are going to call them paying state and possibly fed taxes, They got capone on tax evasion, im thinking feds are not going to capone all of the c.g's

 

when they pass an initative to have supply chains, they will be paying taxes, unless they can prove it is a non profit!

 

In the law now it says you can be compensated for materials and time spent on the garden, it says nothing about paying state taxes!

 

any one that spends 20k start up a grow room is obviously not just supplying their 5 pts and them selves!  so no matter what that type of farmer does it is not going to save em when the walls come tumbling down!

 

when the walls come tumblin tumblin ,,,,that reminded me of a song!

 

Peace

Once again here we go......

 

to supply 5 patients with TRUE HIGH GRADE MED MJ.  Do you think a room with a few thousand watters and just some dirt is going to procure TRUE HIGH GRADE MED MJ.   \

 

LOL.

 

Mini-splits, a half dozen fans, then in-line fans, control panels, timers, eletrical to upgrade so your neighborhood is safe from a fire, Constant supplies, dirts, Organic nutes, amendments, Humidty control panels, regulators, more timers, contruction materials, labor costs, etc, etc, etc. . . this list goes on and on and on.

 

Anybody can be a closet grower but to stayed perpetual and always be on point ain't gonna happen with a few thousand watters in a closet when it hits 90 degrees for several weeks during summer.

 

Ohh, I forgot the HVAC guys time too...cuz things do break,...parts are all chinese.!  LOL.

 

To be a profesional must not be what your used to or talking about.  You must be thinking of the basement banger home growing for personal stash.  Not a legit MED MJ facility.  Everything has a costs....and while you can get by with a few thousand start up that is still entry level. 

 

It just is what it is.  Why do you knucklheads insist on saying everybody has to be poor or totally not pay taxes or be some 2nd class citizen because one has a good set up.

 

I am begining to think everybody just talks all puff smoke all day.  Haters....and pipe dreamers.  I wish there was more people who took this shiiyat seriously.  More shiiyat might get done.

[phaquetoo]

I thought we were talking about income taxes lol!

 

Bye all means write it all off!

 

Peace

[rebel513r]

According to the Michigan Dept of Treasury 2011, caregiver services are non-taxable.

http___michiganmedicalmarijuana.org_index.pdf

[motorcitymeds]

According to the Michigan Dept of Treasury 2011, caregiver services are non-taxable.

So an electrician provides a service so he does not have to pay taxes..?  Waiters provide a service so they do not have to pay.  This is very interesting that they released this. 

 

I am not sure what to even say about this...??  i cannot believe they even allowed  this to circulate...SMH...wow

[phaquetoo]

According to the Michigan Dept of Treasury 2011, caregiver services are non-taxable.

Thank you for taking the time to put that up for all to read, that should take care of the tax questions, for c.g's and pt grows non taxable, for despense or mm centers, they have to be non profit at this time, but when,  not if the despenses get into michigan they will be looked at and maybe taxable,  man I think becareful what you wish for is a good saying for all out legalization, I sure hope to see it in my life time, but im hoping there will still be c.g/pt grows allowed.

 

Peace

[rebel513r]

I dont recall where I found this, but I came across it about a year ago. I know they are not posting it on the LARA site as they should maybe to clarify things.   I could only guess that the wording of the act caused this "does not constitute as a sale of a controlled substance" IF an electrician were protected by a law that stated he was assiting someone with electrical usage and it doesnt constitute the sale of electricity, then he may be protected, but there is no law like that that i am awhare of.

[Wild Bill]

You only have to pay taxes on profit. Caregivers don't make a profit, they only recoup expenses.

 

If you show profit then maybe you're charging too much.

[motorcitymeds]

You only have to pay taxes on profit. Caregivers don't make a profit, they only recoup expenses.

 

If you show profit then maybe you're charging too much.

LOL....there is no amount to high when it comes to MED MJ.  Risking ones freedom to provide medicine...LOL.  NO sir I used to biyatch at CG's getting 400 a zip but i will never say that going forward not after the countless FEderal raids and LOCAl COWBOYS STILL going RAMBO ON CAREGIVERS.

 

Hey if your shiiyat is worth 500 a zip ...all the power to ya.  That CG either has a LAB set up or he has really STUPID RICH people to supply.  Either way I don't give a fux no more about price.  Sick of everyone hiding behind "poor people" , "kids" and fuxing stupid SHIIYAT like some cowboy said on here "grandma" ...WELL HOW DOES GRANDMA GET HER VICODINS, OR MOPRHINE,...SHE PAYS JUST LIKE ALL THE OTHERS DO TO GET MEDICINE...give me a freakin break. GRANDMA..LOL

 

A federal Charge is not worth any amount of money.  So CareGiver's out there get what you can.  Your life is worth more than 150.00 A ZIP to make some dude whining about being poor so he can get DISCOOUNTED free meds.   THEN TURN AROUND AND SELL HALF THAT AMOUNT TO HIS BOYS ALL THE WHILE LAUGHING AT IT.   I Shiiyat on patients that take advantage of CG's to make it benefit themselves.  That is so selfish.  CareGiver's do a SUPER RISKY JOB.  Just transporting it these days is a crime.....well ofcourse that is if you put it into your trunk in 95 degree weather during the middle of summer so it can get all humid and sticky...another example of how our law got ripped up.

 

The audacity of some of the people on this site.  Just about disgust me as much as the LEo cowboy Cops going rambo on CG's just trying to get by and provide a honest living for their GF;s, wives and kids.

 

Sucha joke what all these debates have become.   Another classic example why we can't get shiiyat done here in MI.  Everybody wants something for their own pockets or hand outs and nobody wants to do the RIGHT things. 

 

Another day goes by all the while I am sick to my stomach full of disgust.

 

And for the person to respond to this who is going to say "just follow the law and your cool"....that person can fux off too because all it takes is some unhappy neighbor with a sorry as- life to call and make a "anynmous tip" and your door is getting kicked down and your life destroyed.  They will find something to charge you with then throw up 5 charges on the wall hoping 2 will stick.

 

 

CAREGIVERS.....GET YOUR MONEY THIS SHIIYAT AIN'T WORTH UNDERCUTTING YOUR WORTH SO YOU CAN MAKE EVERYONE ELSE HAPPY.  BE PROUD TO DO GOOD WORK AND GET COMPENSATED ACCORDINGLY.

 

IF THEY CHOOSE TO PAY TAXES...KUDOS TO THEM....SOMEBODY HAS TO PAY FOR ALL THE FUXS GETTING GOVERNMENT HANDOUTS.  I KNOW IT MAKES ME SICK TO MY STOMACH TO PAY TAXES BUT IT IS THE RIGHT THING TO DO FOR THIS COUNTRY, MY NEIGHBORS, FAMILY, ETC.

Edited September 16, 2013 by motorcitymeds