Patient Wants Reciepts For Tax Refund

[jamrock]

A fellow caregiver freind of mine has a pt that wants him to back date reciepts for the last year, so he can write them off as medical tax expenses. Has anybody heard of this, or supply their pts with donation reciepts for each transaction? Thanks

[thanks2]

Since medical expenses relate to federal income tax and medical marijuana is a schedule one drug, you can not write it off on taxes.

[Kingdiamond]

To my knowledge state or federal goverment doesnt ask for taxation on caregivers either way theres no way im exposing my legal caregiving status for someone trying to write off their medicine on their taxes .

[jamrock]

thats my opinion too, thanks guys.

[CedarSpringsCG]

Technically the way it is worded in our law, is that it is a "unlicensed medical assistance" service. Same as a person who comes in to help change sheets, etc.

 

I am with you on not putting your name out there, but there is a way to accomplish it.

[semicaregiver]

There is a fellow, Jim, I do not recall his last name, in Matt Abel's office. Jim is treasure of the repeal movement and has an accounting service. He has a facebook page and is the type that would love to answer a question like this...

 

http://www.facebook.com/pages/Michigan-Caregiver-Tax-Solutions/123994464308711

[LansingAreaCaregiver]

I give receipts to my patients all the time for these kind of reasons. I write it out as "home care services" or "medical delivery" as I exclusively do delivery for my patients.

[Croppled1]

I thought nothing related to cannabis manufacturing and use is a legal deduction for Federal purposes and the patient could very well end up incriminating themselves under Federal Law if audited . A argument might find a alternative finding under State tax treatment but I wouldn't count on it discrimination is harsh . This is the same issue causing problems for Harborside a famous Non Profit Patient oriented dispensary of reality TV fame and closing dispensaries around the Country . They are not allowed to deduct all business expenses related to the illegal activity of medical cannabis distribution and use because its a controlled substance The case on tax treatment was heard by the Supreme Court . I understand patients need to move the needle forward but doing so could create problems . Every penny one takes in needs to be considered income and filed somewhere according to the IRS . Nobody should consider cannabis a deduction under medical expenses if they want to avoid a audit . I did see some reference to people doing this in the last article which caused me to wonder what one should do ? Really a catch 22 for everyone and it just shows how harsh the discrimination is out there . I really hope legalization takes hold but look at the second link . I pray we will not loose this ability to grow our own medicine it helps so much I don't think I could face tolerating the pain anymore while knowing their is relief possible through adjunctive use of medication . I also fear access to normal medical care in emergency rooms around the State . Nobody cares if I take a sleeping pill from one Doctor and a Barbiturate from another . But discrimination is so harsh hopsitals are refusing to prescribe normal medications if a cannabis patient is known putting them at risk . When cannabis is not toxic and has rare if any problems mixing with other medications . I haven't had any .

 

 

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Saved the best for last '

 

http://money.msn.com...-schnepper.aspx

 

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[MightyMightyMezz]

If they were going to want that they should have made it clear at the beginning anyway.

[Timmahh]

Keep in mind for tax purposes. i dont know if this effects the cumulative amount, or effects each seperate transaction. but as a contractor, jobs that total less than 600.00 do not need to be claimed, as the amount, and below, is too low to effectively calculate any taxes from.... i have done service jobs in the past and though I added these jobs in my tax info, they were not recogized by the IRS> this was from my H&R Block Tax professional in the mid 90s, so i dont know how it has changed. but ive used it as recently as 3 yrs ago without issue, though not in the context we are discussing.

 

Not sure how this would play into the tax aspect, thus situations where amounts of 600 or less were dealt with, but the fact as a Caregiver in the MMM Act, you are a contracted person, performing a service or product, specifically to another citizen in the process of the free market and general intrastate commerce involving a contracted position.

[The Digital Nomad]

they won't deduct medical marijuana - they don't allow it for dispensaries in California, and they won't allow it anywhere. It is considered an illegal drug on the federal level, you might as well be a drug cartel trying to claim a business expense.

 

A smart tax accountant can set that patient straight, if they know about tax deductions they can explain that deductions from 'illegal' enterprises are denied. Ok, federal law considers marijuana a schedule 1 drug, no one can dispense it.

 

DN

[The Digital Nomad]

the other business expenses - you are opening yourself to an audit. If the IRS wants to check out your 'home care/medical delivery business' - than a patient claimed $4,000 for the year (thats $250 ounces) That YOU did not file on - how will you give detailed info to the IRS ? "Oh yea, i grew 27 plants, harvested X of ounces, sold at $X, i used my personal car to deliver" - why not just turn that statement over to the DEA?

 

Dispensaries are losing in California, because the IRS is going after them for tax deductions they made. The IRS says marijuana is illegal, so any business deduction is illegal. Pay in Full.

 

So why start that mess here in Michigan?

 

Tell the patient that he did not sipulate tax returns as a part of the deal at the beginning, explain to the patient that it is not a valid deduction, but a warning flag to the feds. Have him ask a tax accountant that knows the laws.

 

This is not a reasonable request by a patient. Just as the patient expects you to protect his privacy (say by not letting the IRS know you grow and distribute marijuana!) - he has to protect you and the other patients.

 

DN

[newbie313]

Id like.to hear how this turns out.

[LansingAreaCaregiver]

the other business expenses - you are opening yourself to an audit. If the IRS wants to check out your 'home care/medical delivery business' - than a patient claimed $4,000 for the year (thats $250 ounces) That YOU did not file on - how will you give detailed info to the IRS ? "Oh yea, i grew 27 plants, harvested X of ounces, sold at $X, i used my personal car to deliver" - why not just turn that statement over to the DEA?

 

Dispensaries are losing in California, because the IRS is going after them for tax deductions they made. The IRS says marijuana is illegal, so any business deduction is illegal. Pay in Full.

 

So why start that mess here in Michigan?

 

Tell the patient that he did not sipulate tax returns as a part of the deal at the beginning, explain to the patient that it is not a valid deduction, but a warning flag to the feds. Have him ask a tax accountant that knows the laws.

 

This is not a reasonable request by a patient. Just as the patient expects you to protect his privacy (say by not letting the IRS know you grow and distribute marijuana!) - he has to protect you and the other patients.

 

DN

 

I claim all income from caregiving, as I believe all should, so that instance would never come up.

[LansingAreaCaregiver]

I claim all income from caregiving, as I believe all should, so that instance would never come up.

[+JuztBudz]

There is a fellow, Jim, I do not recall his last name, in Matt Abel's office. Jim is treasure of the repeal movement and has an accounting service. He has a facebook page and is the type that would love to answer a question like this...

 

http://www.facebook....123994464308711

 

That'd be James Campbell, CPA. Has a lot of great information on how to handle the financial side of this. Peace ... j.b.