compassion centers open

NoBarriers

Well-Known Member
The 10-99 will have your name and tax ID number or ss# on it. If it doesn't it will not be accepted by the IRS. Maybe at the time you are doing business with them it will be a caregiver id but at the end of the year your name and ss # will be on a 10-99 or they won't be able write off what they payed you for the Meds.
 

ricky6991

Well-Known Member
How would dispensary have your name and ssn to put on their tax forms? People have been doing this for yrs in California. Not saying you guys arent correct saying feds one day can put dots together on people who recieved money from dispensary but highly doubt they go around country to thousnads of people to arrest them for it knowing a lawyer could easily fight it... if anything they change laws one day and prosecute only new cases of it not previous.
 

Jersey'sFinest

Active Member
Ricky, I'm pretty sure 30 was referring to me "slinging elbows" since I'm the one that said it. I'm sure that now medical is legal, everyone in the whole world is a damn altruist, only out to get the sickly their medicine and make the world a better place. Some of us are nice people who coincidentally want to make money also. Land on Maui ain't cheap. Noone spites the milkman for the price of a gallon. Everyone happily pays whatever Marlboro and Budweiser are charging without one salty tear. I'm just saying that spending Months per crop (rooting clones, vegging, flowering, drying, curing), Thousands of dollars up front for the setup (I'm not fucking around with one T5 and a single air-cooled 600, no offense anyone), God knows how much in Electric, and countless hours in the room loving these plants should be worth something. Hell, people, if you're a cancer patient getting Chemo, I'll fucking GIVE you QP's. But I won't give away Killer Organic Nuggets to some middleman only to have him tax the end user 10 minutes later. Please don't think me an asshole for this logic. I'm as hippie as anyone, but let's face it, it's a commodity, and it deserves a fair market value.
 

LBH

Well-Known Member
a 99 plant grow is much different than a 12 or 24 plant endeavor. I've already been asked to have meds ready so they WILL be stocking the shelves from our grows at first. If you want an interesting take on the whole thing, this is some of the discussion in our grow group with some input from a former shop owner in Cali and Oregon. Here's his take on how it will go down......oh,...and don't mind the 30 troll, he thrives on attention. I WOULD be interested in reading up on this case he speaks of if it exists. This IS RI, home of the crooked so nothing would surprise me but considering this source,I'm not holding breath. Back to the discussion, here ya go.....

"Usually when the dispensary first fires up they want as many flavors as possible on the shelves..it is alot easier to sell a pound of 8 different flavors(2 zips a piece) than it is to sell a full pound of a single flavor,,they do that for about a year to figure out what the local market really wants, then they get into whole lbs of single flavors.... ya gotta hit them before they get their grows online, once they have the super overhead to cover with their own grow ops thats the end of buying outside product...and don't get confused in thinkin that the high price you see them sell crap at has anything at all to do with what they pay...they want 50% or better margins

Your goin to see about a three year arc on what they pay for incoming product...startin out as high as $1200 or $4,200-4,500 for 4 flavors in a lb....people will start merchin in the next 6 or 8 months and hittin 3,000-3,200 lbs for 5 packs or better, but by the end of the first year you will be closer to $2800-$3000...by the end of the second year dispensaries will be at $2000-$2500 at best and they will piss and moan about that....third year, your done, the dispensaries will have their big commercial supply relationships set and their own grow ops goin.....the first 100 light grow you here about is the beginning of the end for the small guy sellin into the system so be quick and hit a lick.

You can still get a "possession with intent to distribute" charge whether you sell it of not so watch out on that one"


-wondering if I could also get your opinion on part II of the dilemma here. Many fear the scenario you described above because they see the end result being the abolishment of the c/g program once the centers are self sufficient. DO you see any truth in this? I, personally think, that the patients will always need personal c/g's, but the state may have other ideas....thoughts?

"It just makes it tough for caregivers it doesn't do away with it,,you can still have your 5 patients but your plant counts start to get a little high and with all due respect, patients are a total pain in the ass, sorry guys but you are and 5 is a total ass whip.....the despensary owners are goin to start to fight like hell to squash mid size producers out and be vertically integrated by producing their own meds and it is really the only way for the state to close the loop on the tax and supply chain...despensaries love the caregiver and mid size producer the first year or so because they need you and then they will do everything they can to scale up and price you out..once your state throws the preverbial 99 plant federal threshold out the window it ramps up real real quick...it takes about a year for state and lawyers to figure out that 99 plants means absolutley squat to the feds these days, out here the threshold is in excess of 1000 plants with no paperwork at all before your recommended to the feds....as far as the state is concerned and the IRS for that matter, every caregiver out there is not payin their share of taxes...the only way for them to secure the tax dollar is have a closed loop...which is another silly deal because no banks or credit mercahant will take the accounts so it is still a cash business... caregivers aren't big fans of 1099's either and owners don't want to hand them out because of the paper trail both ways, but there in lies the problem with the state...get a couple 1099's for a couple hundred grand, caregivin and sellin to despensaries gets a whole lot less appealing all the sudden.

Don't worry about the first round of big despensary grows because most fail, despensary guys usually see no difference in a bangin 4 light grow and a 100 light grow and they fail myserably...100 lights, thats 100lbs minimum every 60 days in their minds..LMFAO...The whole time tellin ya that they are puttin you outta biz in a couple months and won't need you anymore but they'll buy what you have this time and then fail fail fail again, you have about a year after they get their grows goin before they get it all figured out.

The Cali and Colorado indoor and outdoor floods in with the quickness, especailly outdoor startin in late September..the Cali boys start rollin in with body bags full of killer outdoor that goes for 1000-1200/lb out there but 3000-3500/lb in 5-50 packs, usually anything over 20lbs gets down in the 1400-1600 range for outdoor, that goes till first of december. So remember that if you haven't sold yours by mid October your probably goin to want to sit on it till feb when the prices crawl back up or take volume prices in the ass.

Honestly now, If I owned a despensary in a new med state, i would pouch someone from Colo or Cali with some experience to come and setup and run your big grow right outta the chute....not to many big grows in non med states so not alot of experience and it is not the same thing, scalin up to 100 lights and 200 lights is a beast.. so if everyone is used to closet growin or even some 10 and 12k grows and even if it is the best you have ever seen in your life, they just don't have the skills to go big yet, it is a expensive learning curve to the max...check your ego at the door and get a grower with some real experience and a giant ego to get you in the game with the quickness..

IMO hit while you can and no matter how many rules and regs your readin now, they will ALL change about every 6 months for the next couple of years, its way way more productive to pay them no mind at all and blow and go for a couple of years and then as the dust settles, and they hit $160/oz at every despensary in town, you can decide where you want to align yourself either in the industry or in the private sector. In hindsight I would have done it way way bigger in the begginning and really blown it up and the scale back when all the regs started to get in place a little more

Go get a local "plant or botanical husbandry" permit real quick and without a fuse before it is a real big deal and look for warehouses in 1A industrial parks away from schools and parks...and no matter what make sure your at least 1000ft away from any school, church, daycare, public park, after school daycare, in house daycare ...save yourself some hassle and expense..there is no grandfather rule when it comes to schools and the like because they will make you move or shut you down and they may wait a couple of years to do it just when you get settled in.."

I know I sound a little "matter of fact" and maybe a little jaded about it all but I've watched it here and in a few other states now and its about the same everywhere that is a new med state..

Extracts, hash, oil, shatter, budder, wax, moon rocks, glass, amber etc...that is big money early on but then it floods from the big grows trying to salvage failed grows, gotta try and make something outta it and there are only so many pre-rolls you can hawk to the masses...lol

No one follows the rules and makes money, so if your in it to win it, go full tilt for the next two years and don't look back..the laws evolve and will definatley change a few times before it settles down
 

ricky6991

Well-Known Member
Thank you, a response that makes sence and has explanations... way i see it is exactly how you put it... they going big right away without experience and our state laws restricts them plant wise until patient count is up. That a huge problem for dispensarys and having a good product for patients coming in. Im not saying i wanna get a commercial liscence where they have cameras watching you ect but its easy to have a good tested product with high thc ratings ready for them while they getting on the feet. No need to turn excellent quality meds into extracts ect so you dont go over the rediculous limit. Taking less for meds is more worthwhile then turning it into oils.
 

LBH

Well-Known Member
Don't be fooled though, the growers they have on hand are top notch. This will be a quicker ramp up than most. plenty of talent and they spent the money to set up right. Beautiful layout in there. If anyone missed the open house and would like to take the tour, hit me up and I can arrange it for you.
 

LBH

Well-Known Member
Taking less for meds is more worthwhile then turning it into oils.
My personal opinion is the same as yours but the dabs are getting lots of attention lately, wonder if the general public agrees with us...... I don't think so though,lol I may consider the medibles game .....

chocolates anyone?? :-)

mint chocolate covered oreos, caramel cashew clusters and almond supremes

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mini oreo Cookie's n cream nipples

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ricky6991

Well-Known Member
Honestly, have several people out in cali who run delivery services out there. An edibles shop here could take off albeit. Dispensary prob have a delivery service already but edibles seems to be getting bigger scene.

As for oils and dabs. Yeah, EVERYONE loves it lol. Just matter of paying in small increments like a gram at time that still makes you sitting on decent amounts. Ounce of oil still counts towards you 2.5z limit. So theres no winning.
 

LBH

Well-Known Member
lol,...I'm a "glass 1/2 full" kinda guy, ALL OF THIS is "winning" to me!! :-)

The center has their own medibles kitchen, I wonder if theyre doing extracts or getting those from elsewhere. Hmmmm I wonder what extracts bring in when sold in bulk, wholesale
 

SSHZ

Well-Known Member
A federal audit of a compasion center would show you how wrong you are. Their not going to pay you without your SS# and that's as good as your name!

Actually, it's better (or worse) than your name since man people can have your same name but there's only 1 ss # with your name on it.
 

BrewsNBuds

Active Member
Ricky, I'm pretty sure 30 was referring to me "slinging elbows" since I'm the one that said it. I'm sure that now medical is legal, everyone in the whole world is a damn altruist, only out to get the sickly their medicine and make the world a better place. Some of us are nice people who coincidentally want to make money also. Land on Maui ain't cheap. Noone spites the milkman for the price of a gallon. Everyone happily pays whatever Marlboro and Budweiser are charging without one salty tear. I'm just saying that spending Months per crop (rooting clones, vegging, flowering, drying, curing), Thousands of dollars up front for the setup (I'm not fucking around with one T5 and a single air-cooled 600, no offense anyone), God knows how much in Electric, and countless hours in the room loving these plants should be worth something. Hell, people, if you're a cancer patient getting Chemo, I'll fucking GIVE you QP's. But I won't give away Killer Organic Nuggets to some middleman only to have him tax the end user 10 minutes later. Please don't think me an asshole for this logic. I'm as hippie as anyone, but let's face it, it's a commodity, and it deserves a fair market value.
As a single T5 and single A/C 1000 guy, no offense taken. I think you hit on something that the media should touch on when they do a piece on medical marijuana in Rhode Island. We're not buying and selling an illegal commodity in an underground market like drug dealers moving a brick piece by piece changing hands several times until its worth in weight compares to some precious metals. Buying at .65 and selling at 1.00 requires no skill and no work. You need access to a phone and a room with a table and chair to sit and divide the pie into pieces. You can be dumb as rocks and still do this.

We are enthusiasts: skilled people who are constantly seeking out information to refine how we grow and continually improve the quality of our product. You mentioned the price of milk. Makes sense that if the property tax goes up on the farm, electricity costs increase, the cost of food for the livestock goes up (look at what happened to corn prices after the government decided we should use it to make fuel, .20 an ear becomes $1), the price will necessarily rise. And the farmer will tell you - making a buck milking a bunch of cows is hard, and yea... he's trying to make money. SO SHOOT HIM!

Of course there's a fair market price, and of course all our hard work and investment should produce a reward. But when regular everyday people talk about what we're doing in the medical marijuana states, they still portray us as a bunch of people in Grateful Dead shirts moving sacks around at a cool markup, making our money off kids who are dropping out of high school because of us. And its pretty sad that so many people are so grossly uninformed, but its the reality we're faced with in 2013.
 
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Bean401

Member
I'm personally excited to finally be able to legally walk in a center and purchase medicine here in RI! It has been so long since the law was passed!

I personally grow for myself and I am very satisfied with my medicine and the results I have had. I just really think it will be cool to have access to other strains and have large choices. It will also help spread some good genetics through the state. In the end helping patients have better medicine and keep growers up to higher standards.

I also think it is nice to see them open now with ability to be able to purchase from patients and caregivers that may have access medicine that others could benefit from. In addition to that it will lend credibility to us growers and allow us to gain some legal income from our grows while at the same time helping other patients gain access to diff meds. We are a community and our main goal should always be to pay it forward when you can. So I like the option to be able to reach more patients that may benefit from my TLO 100% clean organic medicine.

Lastly I think its huge that they will have Lab testing! I am a big believer that since this is medicine we need to know what the potency of our medicine is and whats inside it. Having lab tested medicine can also lend to being able to more accurately follow trends in strains medicinal properties that may benefit specific ailments. In addition to that Testing at a Center will lend to better meds everywhere. As testing becomes more the norm, more and more growers will learn ways to benefit their techniques and past that hard work and knowledge to their patients and other patients. I know once I started getting more serious and tested more that I was able to really learn about my strain and track diff methods to increased what my goals where. Which were higher THC haha. Check out my link below to my most recent test results of my 100% organic Deadhead!

I think there is room for compassion centers as well as caregivers/patients. With the RI program set up that way it is, we all can work together and the centers will also need growers. Win, Win for everyone!

https://www.knowyourgrow.co/strain/1537
 

Franklinstein

Active Member
After talking with the guys at Slater today, you will have a 1099 filed with your tax ID if you sell more than $600 to them. There is nothing specific on the 1099 that tells them what you are being paid for. As long as you pay your taxes on it, the IRS probably will never look at it. It sucks that you can't take tax deductions for your expenses, but that's the way the system is at the moment.
 

ricky6991

Well-Known Member
Sucks at same time though... no deductions mean paying really high taxes out and with what little amount given each time THEN subtracting taxes it going to suck. Time will tell how thing work out though. Last place you want to be open to interpretation is with IRS lol
 

Franklinstein

Active Member
Yeah. Depending on your tax bracket, I think you can expect to net ~ $100 or so per zip after 15% social security (you get to pay both employer *and* employee withholding on 1099 income), and around 20%-35% (depending on bracket) in state and federal taxes. That's figuring you're getting $130-$150 per zip wholesale. It will be interesting to see how the numbers end up once everything is running. I can see it driving down the direct-from-caregiver price to something at least $50 below dispensary. That will be offset by the sheer variety available at the dispensary commanding a higher price probably.

All speculation on my part.
 
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