dispensary writing checks for meds rather than cash

[ricky6991]

Ok, title says it...

Local dispensary just opened. I have family member who knows manager in charge of sourcing outside meds. Therefore, i am debating giving my meds to them monthly. So once a month i get a check for 5 lb at say 2500 a peice. So $12,500 check a month deposited into a buisness acount... come the end of the year i file as sole proprietorship for farming.

I file my exspenses for rent, natural gas, electric, nutrients as main exspenses.

So -

Gross- 12,500 month------------- 150,000 year

Expenses -

Rent- 1,200 month---------------- 14,400 year
Natural gas- 250 month ---------- 3,000 year
Electric- 1,200 month------------- 14,400 year
Nutrients- 250 month------------- 3,000 year

Ok i can find other exspenses like sequrity, bank fees ect...

My net income would be 125,200 say i find another 20,000 a year to deduct so 105,200 a year is my better estimated net income.

So 105,200 - net
Then 30% total for goverment taxes - 31,560

73,640 would be my total after paying 30% to goverment.

Ok, this deffinetly new territory to me so please feel free to add your 2 cents in... this sound worthwhile to do? Checks can be written out to myself and in the dispensary books the check will have my caregiver registration number only... would they ever question what they were paying me for every month? I am legal and dispensary is legally allowed to compensate caregivers for meds.

30% = 8% city, 10% state, 10% fed, 2% ssq

 

[ilikecheetoes]

sure they will question you if you get audited. they question everything.
whats the question here?
I think 100k+ salary is pretty worthwhile.

You also forgot the fees you have to pay for business license, whatever BS other licenses you need. IE I have to pay a seperate BEAR license. basically $120/year for the privledge of working on computers. Who knows what they have for farmers.

On a good note you could get a big gas tank and have it filled at Farm rates and not pay tax. You can also drive a farm truck with farm tags on it for cheaper.

i still dont understand the question here.
taking a 12.5k check from a dispensary would bother me. They get shut down and vanish all the time around here.

 

[PurpleBuz]

your forgetting depreciation for equipment purchased. Also a lot of "computer hardware" depreciation can be accelerated since a lot of it is considered worthless right after purchase.

also you can pay reasonable rates for labor

 

[ricky6991]

Thats the questions lol... in a nut shell.

They are first and only dispensary for my state and will be huge around here. I can easily give them all meds.

Would i be in trouble for IRS if they were raided and shut down dispensary? They would prob follow the checks being paid out for meds. Where it would lead to my account(after warrant gives them my name from registration number) which i paid taxes for and if they came after me, i am a legal cardholder following state laws... idk, info regarding IRS is not familiar to me. Hence the post.

 

[hotrodharley]

Purple is talking about equipment amortization schedules for your grow gear and they are valid business-related expenses. Also all your mileage involving actual business - client visits, deliveries etc. Trips to the hardware store IF all you are buying is stuff for the business.

Buy Quicken Books or Peachtree or some other bookkeeping suite. The interviews alone will educate you.

 

[ricky6991]

Yes i can find plenty of expenses that are real for doing it... just curious if the feds shut down the dispensary, would they look into cardholders who took compensation for giving meds to them.

Also, would the IRS try to go after those cardholders because its high amount checks being written? Then find i am filing taxes on the money like i should and audit me to see those checks were recieved for meds and thus i have broken fed laws.

This situation is not new and dispensary have been around cali an other states for awhile. I know they bought meds from people with checks cause if they are caught buying with cash they are breaking state laws for not properly inventory ect... so i know even though people always respond with fuck that or just sell on street ect...

The situation is, i have a deffinet "in" and they come pick up meds from me still on the plant and dry and cure it themselves... therefore, i dont need to worry about grey areas of the law based on "useable" meds ect... i have my plant count legal and cut them down. He comes an picks em up an writes me a check... no driving over my limits or anything. He legally drive with 100 lbs.

 

[Rancho Cucamonga]

I think your main issue will be your ability to provide 5 lbs a month. Glancing at your one journal entry doesn't look like you can hold up your end of the deal.

And why on earth would you be posting your financial info online, fictional or non-fictional, on a marijuana forum? We didn't need to know any of that to answer your questions.

 

[colonuggs]

um you cant take any business tax deductions...rent power... all that is not allowed federally..

you gross $150000 you owe on that federally so 35% to the Feds.($52,500)

if they audit you and you took them.... you will owe

now your state wants their cut B &O taxes plus the usually business

Then theres the cost of producing 5 pounds a month... which I can tell you takes around 18 -1000 watters and 4 seperate grow areas

3 flowering and 1 veg to feed them....3 - 10 x 10 ft areas for 4 lights each with 25 plants @ 3-4 oz each plus a 6 light 15 x 10 for veg

plus a warehouse... we were spending $4500 monthly for rent and electric of a 2000 sq ft warehouse with 180 amp service thats another $54,000

So recap...Federal government takes $50,000 you pay $50,000 for expenses... State is gunna take $10-20,000

that $150,000 shrunk down to $30k......Moral of the story........TAKE CASH ONLY

 

[UncleBuck]

um you cant take any business tax deductions...rent power... all that is not allowed federally.. you gross $150000 you owe on that federally

they audit you and you took them.... you will owe

are you saying they are not deductible federally because cannabis is federally illegal?

because there have been SCOTUS cases to the contrary.

 

[ricky6991]

I think your main issue will be your ability to provide 5 lbs a month. Glancing at your one journal entry doesn't look like you can hold up your end of the deal.

And why on earth would you be posting your financial info online, fictional or non-fictional, on a marijuana forum? We didn't need to know any of that to answer your questions.

I dont post all my stuff online... if you have nothing useful to say then stfu an go post elsewhere. My post in hydro section shows i will easily harvest 5 lb anyways so your just showing your lack of knowledge. 5 lb off 12 plants is not impossible at all. So im allowed 24 flowering plants therefore, 12 plants a month for 5lb is more than reasonable. Besides everything posted was just generally speaking to give people who want to help an example

Im not posting any person stuff for financials. It is very generally speaking so im not worried about it.

 

[ricky6991]

um you cant take any business tax deductions...rent power... all that is not allowed federally..

you gross $150000 you owe on that federally so 35% to the Feds.($52,500)

now your state wants their cut B &O taxes plus the usually business

Then theres the cost of producing 5 pounds a months... which i can tell you takes around 18 -1000 watters and 4 seperate areas.... 3 flowering and 1 veg to feed them

they audit you and you took them.... you will owe

I thought you pay taxes on your net income which is after deductions. I didnt know the 10% feds take is on your gross income? I have to sit down with cpa an have them tell me financials. My concern is more if dispensary is shut down by feds, will feds look into who they gave money to for meds and go after them. Which will require a warrant for them to see who i am but im sure they get that easy enough.

 

[colonuggs]

are you saying they are not deductible federally because cannabis is federally illegal?

because there have been SCOTUS cases to the contrary.

tell that to harborside owed and paid the feds millions

https://www.baycitizen.org/news/marijuana/irs-oaklands-largest-pot-dispensary-owes/

Zamarra said that the IRS letter states that Harborside can’t deduct rent, payroll, health insurance or worker’s compensation insurance — deductions that are standard for many other industries. The only two things the IRS says the dispensary can deduct are the cost of buying marijuana and the cost of alternative health care services such as yoga, he said

That is why farmers in washington state wont produce hemp or marijuana until the feds change the laws

and the Feds have already stated they will more than likely take Colorado and Washington State to court in order to prevent the recreational use and sales of marijuana

 

[ricky6991]

Colonugz...

I have 2 flower rooms and a veg room... 12 veg, 24 flower. Every month plants rotate to next room. Flower rooms have 6kw sealed with co2. 5lb is easy target per month. Hydro and when i switch to scrog im expecting more. Easily 7 lb per 12 plants IMO... my electric with 1 flower room an veg is 450 month. Not expecting more than 1k electric month with both. My rent is 1,100 a month where i am. So costs to run thisi n huge or anywhere near your figure. Not being rude. Just saying i have a method and it works pretty well. Deff could be better but no need to get anything crazy.

Are you sure fed goverment takes 35% alone and out of gross income? Spoke to someone who did sole proprietorship for 3 yrs before becoming corporation and they told me exactly what taxes were.(listed above) and how i did math above is how cpa does taxes for them everytime.

Either way, they cannot pay in cash per the laws... so option is check payment, find out how much i loose from taxes to see if worth it, find out if feds would raid me just because i gave to dispensary and paid tax on it.

 

[ricky6991]

Ohhh ok, thats for me being listed as a farmer... so if i were to find another occupation to file under they would file taxes differently.

 

[Amato6]

Yo this is the dumbest kid on this forum... A few months ago u were bitchin about gettin raiding bypolice... Havent u learned ur fuckin lesson yet? ... 5lb a month hahahaha kid ur not even allowed ova 5 ozs so where u gettin all the pounds from hahaha if the dispensary is actually operating like that which i doubt they r... They gunna get busted too.... There gunna get raided neway sd the attorny general in his latest article in the wonnsocket call..... This is to help u bro shut your fucking mouth delete ur username off this forum and every other that ur on... You the type of person that puts the bad rep on the rest of us cuz u dont know how to KEEP YOuR FUCKin MOUTH SHUt.... I hope the feds see that ur growin 5 lbs a month... Another tip for ya... Dont drop the soap

 

[DMTER]

^ What is up with these people...see ridiculous stuff like this everywhere?????

 

[ilikecheetoes]

weeds legal bra. damn facebook generation thinks they have to twitterbate every turd they drop.

 

[ricky6991]

Amato... people like you are so nieve to things... there are so many cardholders who have tons of lighting and produce tons of meds off so little plants.
Yeah, cops came into my previous place cause i didnt cover the smell. They left cause i was legal an left all my plants in tact. Whats your point?

What is with people whinning over 5lb off 12 plants i dont get it... people do a scrog and get 14oz a plant. Hell, the dispensary owner is expecting 14oz a plant WITH 99 PLANTS.

Also, the DISPENSARY OWNER is the one who said he is buying meds from cardholders prob for first 3 yrs or until the state laws allow them more plants. 99 plants cannot suffice for a whole state...

Also, who said i would have 5lb of usable meds at any point in time... dumbass, read the post. He comes an takes the plants and writes a check. NO DRYING, NO CURING for me to worry about. Therefore, i dont break any damn laws. Dont have to drive meds anywhere ect.

I hate that certain people dont think outside the box and then run their mouth like they know it all. Simple fucking concept... stay within your legal plant count, have a grow setup capable of producing how much meds you want, figure out if you gifting excess to people or in my case to the dispensary... all of which is legal. So what exactly did i do for you to come say bunch of retarded nonsense and who am i giving a bad name?

But if it were you taking my excess meds then it wouldnt be an issue but because im talking about compensation people flip out. Get over yourselfs people WILL recieve compensation for meds an state knows that. THATS WHY ITS LEGAL. No one being hurt and no one selling drugs on the street. ITS GOING TO A MEDICAL FACILITY WHO DISPERSES IT TO PATIENTS FOR MEDICAL PURPOSES.

Even if feds looked at this exact post an seen who i am ect, it would mean nothing cause point of this post was to hopefully have people in state where dispensaries exist chime in and say if they know people who give meds to them and if they had issues with paying taxes on the compensation. Since dispensaries need to pay for meds with checks by law. Not cash... since this is not the first dispensary to be opened this year or at all idk why some people act like this has never been done before...

You wanna pout then go cry to everyone in cali who recieves cash for there meds and dispensary charges 60 for eith to patients. Not only is it illegal buts its then wrong to charge so much. Go cry to people on craigslist who advertise multiple strands and edibles for outrageous amounts of money... with your attitude you would Go cry to the state for taking money in order to be allowed to even get meds, go cry to doctors who want money for signing off for meds, hell, go cry to EVERYONE because EVERYONE wants/ needs to be compensated to live jackass.

 

[ricky6991]

Btw, judging by your attitude you must be a legal patient.(no pun intended to patients, just the ones that think having a card makes them above all else and time and meds should be free at someone elses exspense) i highly doubt you picked up your first joint when they printed your med card out. Therefore, take you hypocritical ass somewhere else... wouldnt be people selling drugs if it was for the people buying it... job of a caregiver is to provide meds for people in need. Guess what growing takes money and time to do. You dont want to pay any compensation then grow youself and dont have any caregivers registered to you... i somehow doubt again that you dont have a registered caregiver.

Ontop of that, you get 2.5 oz limit off one damn plant so if you grow more than 1 plant then your again being a hypocrite.

 

[BustinScales510]

You can send all the money you want to the IRS, but youre still making money illegally as far as the federal government is concerned. Growers and dispensaries in med states arent insulated from federal prosecution. Getting paid with checks and trying to get all creative with tax deductions and shit is gonna create an immediate awareness of you.