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Growing Jobs Along With Legal Marijuana.


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Legal Marijuana Sales Set To Quadruple By 2018 Posted by CN Staff on April 09, 2013 at 05:40:51 PT

By Caroline Fairchild

Source: Huffington Post

 

cannabisicon.gif USA -- U.S. legal marijuana sales are projected to hit $1.5 billion this year, and that could look like nothing in just a few years. Data from Medical Marijuana Business Daily shows that total sales could quadruple to $6 billion by 2018 on the back of legalization efforts in Washington and Colorado, as well as the growing medical marijuana industry.

The two states both legalized the recreational use of weed in November. Elsewhere, 18 states and Washington, D.C. have made medical marijuana legal, while 10 others have formal measures pending to legalize medical marijuana, according to the National Cannabis Industry Association.

 

 

That's reflective of a wider acceptance of the drug. A recent Pew Research Center poll discovered a majority of Americans support pot legalization for the first time in more than four decades. As many as 52 percent of Americans support legalizing weed -- 45 percent do not -- and nearly three-fourths say the amount of money spent enforcing marijuana usage laws is not worth the cost.

Such growing support has led marijuana-tied businesses to pitch their companies to Wall Street investors, the Los Angeles Times reported in March. Take Vincent Mehdizadeh, founder of MedBox, an automated weed dispensing machine company. He's seeking $20 million from investors in anticipation of potential expansion.

"Everybody's loosening up a lot because they realize the momentum has shifted and the financial world is going to have to make room for this industry," Mehdizadeh told the LAT. "Wall Street and investment banks are going to have to come along for the ride, eventually."

Thinking about investing in the marijuana industry yourself? Be sure to keep the risks in mind. It was reported last year that 500 of the estimated 3,000 U.S. marijuana dispensaries either had been closed by the government or shut down in the past year.

Source: Huffington Post (NY)

Author: Caroline Fairchild

Published: April 8, 2013

Copyright: 2013 HuffingtonPost.com, LLC

Contact: scoop@huffingtonpost.com

Website: http://www.huffingtonpost.com/

URL: http://drugsense.org/url/PFbZOc3X

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Hey funny thing, I was just reading about that in my daily Times. Check it out. the Times

 

seems your guys have a very conservative estimate GB...

 

Your article   ....Caroline Fairchild

...." .... total sales could quadruple to $6 billion by 2018 ...."  ....

 

vs

 

" Cannabis is one of the most lucrative forms of agriculture and in the United States the industry is worth some $64 billion a year, the report said."       ...Stuart Winer

 

 

....hmmm....  and the Winner is ....

Edited by solabeirtan
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Hey funny thing, I was just reading about that in my daily Times. Check it out. the Times

 

seems your guys have a very conservative estimate GB...

 

Your article   ....Caroline Fairchild

...." .... total sales could quadruple to $6 billion by 2018 ...."  ....

 

vs

 

" Cannabis is one of the most lucrative forms of agriculture and in the United States the industry is worth some $64 billion a year, the report said."       ...Stuart Winer

 

 

....hmmm....  and the Winner is ....

 

 

The sky's the limit.

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Why cant caregivers claim this as a business when doing taxes!

 

Is it considered a business?

 

Typically a business is an enterprise that intends to make money for its owner.  (unless not for profit type business/corporation) 

 

 

I wonder why one would WANT to claim it on their taxes?  (Its not as if a person should show a positive income as a CG,so it wouldn't benefit a person on their earned income. ) 

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Sometimes a person is forced to prove how they are surviving. Cell gave a great answer over at mcp and hope it gets carried over here. There is specific criteria the IRS has when determining if you are operating as a business or hobby but unfortunately the feds won't let you take advantage of the benefits of operating as a business.(unable to expense most common expenses)

 

Income is income, if you earned it shoveling snow or selling crack it is illegal not to report it.

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Pulled this from the web

 

 

 

Definition of a Hobby vs Business

 

First, the IRS defines a hobby as an activity that is not pursued for profit. A business, on the other hand, is an activity carried on with the reasonable expectation of earning a profit.

 

The tax considerations are different for each activity so it is important for taxpayers to properly determine whether an activity is engaged in for profit as a business, or is engaged in as a hobby.

 

Simply stated, you must report and pay tax on income from almost all sources, including hobbies. It is in the handling of expenses and losses that the two activities differ.

 

Note: Internal Revenue Code Section 183 (Activities Not Engaged in for Profit) limits deductions that can be claimed when an activity is not engaged in for profit. IRC 183 is sometimes referred to as the "hobby loss rule."

 

Is your hobby really an activity engaged in for profit?

 

If you are not sure whether you are running a business or simply enjoying a hobby, here are some of the factors you should consider:

 

Does the time and effort put into the activity indicate an intention to make a profit?

 

Do you depend on income from the activity?

 

If there are losses, are they due to circumstances beyond your control or did they occur in the start-up phase of the business?

 

Have you changed methods of operation to improve profitability?

 

Do you have the knowledge needed to carry on the activity as a successful business?

 

Have you made a profit in similar activities in the past?

 

Does the activity make a profit in some years?

 

Do you expect to make a profit in the future from the appreciation of assets used in the activity?

 

An activity is presumed for profit if it makes a profit in at least three of the last five tax years, including the current year (or at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses).

 

The IRS says that it looks at all facts when determining whether a hobby is for pleasure or business. The profit test is the primary test. If you can show that the activity earned income in three out of the last five years, it is for profit. If the activity does not meet the profit test, the IRS will take an individualized look at the facts of your activity using the list of questions above to make the determination business or hobby. It should be noted that this list is not all inclusive.

 

Business Activity: If the activity is determined to be a business, you can deduct ordinary and necessary expenses for the operation of the business on a Schedule C or C-EZ on your Form 1040 without considerations for percentage limitations. An ordinary expense is an expense that is common and accepted in your trade or business. A necessary expense is one that is appropriate for your business.

 

Hobby: If an activity is a hobby, not for profit, losses from that activity may not be used to offset other income. You can only deduct expenses up to the amount of income earned from the hobby. These expenses, with other miscellaneous expenses, are itemized on Schedule A and must also meet the 2 percent limitation of your adjusted gross income in order to be deducted.

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I am very aware of the above.  Many do not understand the difference though.  Those incomes are reported very differently.  A hobby (as described above) is not considered a business......Nor does it count towards earned income the same.

 

Many that do not own a business are not aware that there is a "self employment tax" paid on their yearly taxes either.   Its not "chump change"  :)

 

Thanks for sharing the info michaelscott,it might help clear up some confusion for some on the issue.

 

I was not being sarcastic in my answer above, if it was taken that way. 

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I am very aware of the above.  Many do not understand the difference though.  Those incomes are reported very differently.  A hobby (as described above) is not considered a business......Nor does it count towards earned income the same.

 

Many that do not own a business are not aware that there is a "self employment tax" paid on their yearly taxes either.   Its not "chump change"  :)

 

Thanks for sharing the info michaelscott,it might help clear up some confusion for some on the issue.

 

I was not being sarcastic in my answer above, if it was taken that way. 

 

you bet ya self employment tax is my retirement fund now, I was always self employed and paid my taxes, of course there are alot of things you can do and not pay taxes on it, but that is how they nail alot of people doing black market stuff, if they cant out right catch you hawking your wears, they look into your life style and bank accts, all you have to do is own a few things and never have been on the tax books and you will get hit for tax evasion, one way or the other uncle sam is gonna make you pay!

 

Yea Im am very thankful I paid self employment taxes, aka social security! I only missed one yr since I was 15 yrs old, and it was in the late 70's or early 80's, the only time I collected unemployment, and nope no marvin to call, we waited in lines that took almost 8 hrs to get thru to get your 2 week check, and it was a whole lot less than what it is today lol!

 

Id have to say ive almost gotten all of the money i paid in to self employment back already!  yup im one of them running the system out of money, I paid it and I deserve it!

 

when it comes to taxes, if you are self employed it is upto you to claim your income, a business I was doing work for never 1099 me I didnt pay it one yr, 3 yrs later the irs got a hold of me and said i owe a certain amount from that busines from a few yrs back, I thought it was alot more than what I would have owed had I paid it on time, but I didnt ask no questions, i just paid it, i sent the copys into the state so I could fix it their also and just paid them what they said I owed, ive never be audited, and now I know I will never be audited, I guess im one of the lucky ones!

 

Peace

Jim

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The IRS views any income derived from MM to be illegal.  You have to claim the income but cannot claim any legitimate business expenses because it is not a legal business.  Just my understanding....am not a cpa.

a c,g can only recoup moneys they spent plus labor towards the grow, they dont want you to make any money off of it, they only want you to break even! if you are a c.g and within your limits ;and dont leave any kind of underground trail, They do not want us to claim what we are legaly helping our pts recieve for their ailments, it is a no tax situation for c.g2 pt. registered to them thru the registry!

 

Well im sure you get the jist of what im saying, c.gs are supposed to only recoup costs they incure to get their pts mm and ways to use it!

 

Peace

Jim

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a c,g can only recoup moneys they spent plus labor towards the grow, they dont want you to make any money off of it, they only want you to break even! if you are a c.g and within your limits ;and dont leave any kind of underground trail, They do not want us to claim what we are legaly helping our pts recieve for their ailments, it is a no tax situation for c.g2 pt. registered to them thru the registry!

 

Well im sure you get the jist of what im saying, c.gs are supposed to only recoup costs they incure to get their pts mm and ways to use it!

 

Peace

Jim

I respectfully disagree

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No, you have it correct Mickeydee.  That is why until they treat us like any other legal entity I am hesitant to report ANY income from MMJ.

agreed. I also believe its border line tyranny to expect me to pay taxes on something they would lock me up for. I cant fund my enemy based on the principles of self preservation.

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