Ladies And Gentlemen, Let's Talk Taxes.

[Indicat]

considering it's a safe assumption that the IRS would expect us to pay thru a 1099 or something like that:

 

how do we compute the amount to pay taxes on, profit after costs?

 

thanks!

[Inepsa]

considering it's a safe assumption that the IRS would expect us to pay thru a 1099 or something like that:

 

how do we compute the amount to pay taxes on, profit after costs?

 

thanks!

 

The state of Michigan does not condone the act of selling a controlled substance. If you cannot sell cannabis, then you cannot pay taxes on it, yet.

 

As the law states:

 

(e) A registered primary caregiver may receive compensation for costs associated with assisting a registered qualifying patient in the medical use of marihuana. Any such compensation shall not constitute the sale of controlled substances.

I am not a tax professional or an attorney.

[jessiejamez]

The state of Michigan does not condone the act of selling a controlled substance. If you cannot sell cannabis, then you cannot pay taxes on it, yet.

 

As the law states:

 

(e) A registered primary caregiver may receive compensation for costs associated with assisting a registered qualifying patient in the medical use of marihuana. Any such compensation shall not constitute the sale of controlled substances.

I am not a tax professional or an attorney.

The way I read that, you're not supposed to make any profit. If you are making any money not, just recouping your costs, you're in violation. Don't get me wrong, I think that people should be able to make a couple bucks for their time. Now if you want to get technical your time has value. There are opportunity costs which are lost being that you are spending your time elsewhere. I am not a tax professional or an attorney either but, I wouldn't recommended making any money on this.

 

I spoke to a patient yesterday, we decided that if you want to make any money at this you need a lot of weight *illegal weight".

[Inepsa]

The way I read that, you're not supposed to make any profit. If you are making any money not, just recouping your costs, you're in violation. Don't get me wrong, I think that people should be able to make a couple bucks for their time. Now if you want to get technical your time has value. There are opportunity costs which are lost being that you are spending your time elsewhere. I am not a tax professional or an attorney either but, I wouldn't recommended making any money on this.

 

I spoke to a patient yesterday, we decided that if you want to make any money at this you need a lot of weight *illegal weight".

 

I in no way condoned cargivers making money off of patients.

[jessiejamez]

I in no way condoned cargivers making money off of patients.

how about patients supporting their caregivers financially? They have had to devote time, money and real estate to produce medicine for their patients at GREAT risk?

 

I think I would need a working definition of "making money". To me banking a few hundo for future expenses would not be considered making money.

[Inepsa]

how about patients supporting their caregivers financially? They have had to devote time, money and real estate to produce medicine for their patients at GREAT risk?

 

I think I would need a working definition of "making money". To me banking a few hundo for future expenses would not be considered making money.

 

Making money: obtaining more money than is reasonably necessary to grow medical grade cannabis.

 

I agree that caregivers cannot do this for free and need to recoup their costs for the grow. Including cost for genetics, electricity . .. . the list goes on.

[Elwood P. Dowd]

What is the ethical dilemma in a caregiver making a profit for providing a service?

 

Why is it acceptable for EVERY other facet of the medical supply/support industry (thats what it is) to make a living from their service, yet somehow providing professional horticultural services for a patient does not apply?

 

Does anyone here think that, say a home care nurse should not be able to make a living simply because of the level of need of his or her patients?

 

Even Hospice nurses and people giving chemo to kids with cancer make a living wage. Why don't we look down on them the way we look down on profitable caregivers here? Do you disdain gardeners or pharmacists as much as caregivers for seeking some amount of personal gain?

 

from what I can gather growing MM for 5 patients is pretty much a full time pursuit.

 

and it is my opinion (not a lawyer) that the law absolutely leaves room for making a profit. If one puts in 40 hours a week tending patients crops, their "costs" go way beyond the physical assets involved. A persons time has value, and it costs a person that value to be with the plants instead of at their job. "opportunity costs."

 

('proly a hot button issue deserving of it's own thread but here it is)

 

P.s. I have no stake in this issue one way or the other, It just seems a bit hypocritical for there to be so much ire directed toward the idea of making a reasonable profit for providing a needed service.

 

 

As for taxes you pay for income gained through providing horticultural services, thats all the IRS needs (or probably wants) to know. DONT try to deduct any business expenses related to your grow, I think that is a felony. (not an accountant either so CYA)

[+420Atheist]

I am not a lawyer or even a CPA. Do not take anything I say as advice. See a tax attorney. If you listen to me (or really anyone on the Internet on this issue) you probably need a psychiatrists too.

 

The law does not say you can not make income from caregiving. It says you can't sell the marijuana directly. That means you charge for your efforts and not for the end product. Realize every dollar you make needs to be reported for taxes. Every dollar you make. Now here is the big stinky turd that is our tax laws. You are not allowed to deduct anything that is marijuana related as the feds see that as illegal activity. So if you grossed $5000 you owe taxes on $5000 even if you spent that much on equipment. It is not fair. But for now what are you going to do? just ask all the dispensaries in CA that are being audited right now. Also there was a news article a couple of weeks ago that the IRS was asking banks to keep an eye on dispensaries. I have said it before but just look at what happened to Al Capone if you don't think the gov does not use the IRS to go after people they don't like.

[newcaregiver]

*not an attorney/cpa*

 

If I was in this position, I would not pay federal taxes at all. When you do, you are literally admitting to being a drug dealer. Good luck defending yourself after a DEA raid when the record shows your marijuana-related profits on file.

 

And for those wondering why reasonable growers would want to make a few dollars over electric costs, see above. Attorneys are 15K for a lengthy felony case. This risk of prison for every grower is very real.

 

I cannot imagine having the arrogance to give my caregiver lip for requesting payment beyond electricity and equipment. He or she is risking many years in federal prison for growing your medicine. Do a Google search if you're rolling your eyes. I can give you the mailing list for packages of a NORCAL grower, who played within the state rules. He lost his house and is currently in federal prison.

[shiningheartwoman]

What the heck dont pay taxes on it.. for crappin out loud its medicine!!! Medicine should not have taxes on it period ESPECIALLY NOT ORGANIC MEDICINE! Secondly as with what everyone stated above there shouldnt be any profit being made from it therefore you wouldnt need to pay taxes on it and overall and most important and this is my opinion and my opinion only and that is they get enough of our damd money. we work blood sweat and tears for their pockets. they tax our homes, heat, educations, transportations, recreations god what DONT they tax anymore... so WHY pay them.. I mean after all if you think about it Immigrants that are allowed to come into the country to work our jobs, live on our land, drive our cars dont have to pay taxes at all educations for free without taxes etc.. they get to live here free, take our money, send it home and not pay it back into the system like the rest of us.. well hells bells where do i sign up to become an immigrant!!!!!.. I applied for a Nursery job a couple yrs ago at a local nursery.. Gardening working in their greenhouses etc.. Done it before plenty of qualifications. Went to michigan works - Add stated 9bucks n hour, full time full benefits etc.. plz apply at MI works. So i did.. Asked the receptionist where the app is as she was handing me a packet she asked me are you an immigrant? I was like um noooo why ? shes like oh, well they only have 2 openings for locals the other 9 are for immigrants only. I was like are you seriously kidding me? - looong story short after telling her about how i disliked the crap going on i took the whole crappin package from her hands and walked out.. Upon reading it thru.. get this.. If i was an immigrant.. I got free housing, free transportation, got spending money every week for necessities for me and my family however big it is (over and above the paychecks), id get daycare paid for free, id get every month a certain amount of money alloted for clothing etc, groceries were free, did not have to pay any taxes, did not have to speak english entirely, they got full time pay, full time hours and yes a benefits package. Now how does that work when CITIZENS busting their butts here cant get crap for help, programs being janked from us, taxes being raised, being taxed on every crappin thing etc.. get real.. none of that makes any sense.. imma bout ready to move out of country wait a yr and become an immigrant myself and come back and LIVE off the system too!! I mean after all if its that easy for them WHY NOT RIGHT???!!! So in closure.... scr** them i wouldnt give them an ounce of tax money for any of it...... whats the age old saying... what they wont know wont hurt them.. what are they going to do tax our air next... wouldnt doubt it!!! peace and love all...

[+420Atheist]

Just to be clear I would not list the income as "income from growing marijuana." I would list it as misc day labor work or something like that. That is not a lie since you are being paid for your efforts.