Prairie Smoker
Member
I pay $15/gram. How much you charge per hour? How does that work fella?I dont get that. How do you sell an ounce? Your like an employee?
Being a DG for a living and paying taxes.
- Thread starter redi jedi
- Start date
oakley1984
Well-Known Member
whoever is growing for you, is fucking you hard.
redi jedi
Well-Known Member
Well how do compassion clubs operate than? They make profit to cover expenses and pay employees? How would being a DG differ?
redi jedi
Well-Known Member
Where are you getting your supply?
redi jedi
Well-Known Member
Sir.Ganga
New Member
Good question??? Compassion clubs and despenseries are at the front of the war but are still illegal in Canada. As of right now selling cannabis is a criminal offence and purchasing or supplying can get you caught up in a wirl wind when they do get busted.
If they actually are paying taxes to the government they are not claiming monies from the sale of cannabis. How I think it works out is they work the price per gram to the customers but when submitting taxes it becomes a total service not a product they sell which is being taxed on.
Until they are legalized be careful, legal patients can loose their license if caught buying or selling product to these businesses.
I doubt most compassion club opereators or dispensary operators are going to wade into that shitstorm. My wife is involved with an NPO (non-profit organization), and its no free pass for fuck all, a person would be way farther ahead having an incorporated company, or even sole proprietor. Through a company the tax issues are the biggest concern, an NPO comes under much more scrutiny re: donations, cashflow, overhead, etc... Sooner rather than later some of us are going to be making legal, taxes paid incomes via our legal status, I commend the OP for pursuing this, and more power to ya redi jedi.
headband707
Active Member
Actually the compassion clubs are not recognized by Health Canada as being legal lol.. Because Health Canada is one big joke! You end up like I am now looking for a good designated grower and lots of them have limits for example you need tobe a 40 gram a day patient and they hardly ever give this amount unless your in the last stages of your life..It's hard to have any sympathy for Canada and it's lack of care for anyone they can't make a buck off of headband 707
headband707
Active Member
You can grow for the clubs at what is called "Experimental purposes" .. For example if you have more then what you planned then the clubs can take the extra off of you for these reasons. The clubs are not the best place to get rid of your bud because they pay $1500.00 per lb unless they think it's good then you will get more .Best thing to do is bring in your bud and let them see. The Gov came around to the clubslast year and said they wanted the names of the growers and how much they made etc. Most of the growers are not into giving out this info. stay safe headband 707
OGEvilgenius
Well-Known Member
Technically true (except for the profiting part, you are allowed to sell your medicine to your patient if you are a DG legally, it costs you money and time, you are allowed to charge for it), but all the dispensaries that are long established have won some major court battles.
doingdishes
Well-Known Member
uhm...you can't have a new DG...yet
doingdishes
Well-Known Member
i know that BCCCS has a CRA case they are appealing because one of their growers got audited for not paying taxes. the argument is that it's medicine therefore it's "zero rated" so no taxes...but even though they had a GST guru at their case-he helped write GST laws i believe and even had some law students come up to him for an autograph!!-they still couldn't get it that there should be no taxes.
you only have to pay taxes on what you earn or charge your patient. you can't be expected to do it for free. i would structure it though that you break even and no $$ is made..that way nothing is owed. you could have a lot of write off's you are business for self.
very good idea to talk to an accountant
cannadan
Well-Known Member
start a business...use your legal name as the business...
you get a gst number.....you pay quarterly on your earnings...less your imput tax credit..
Your four gst reports for the year are your full earnings..
you do your taxes...and pick an industry code that sorta matches what you do....as a business...
Do your taxes fully...take whatever tax breaks you qualify for...pay the amount owing...
You now have a fully operational business...
In year two you will receive your statement for quarterly income tax installments based on your prior year...
Pay the taxes in advance and come tax time your should owe nothing...
They don't ask you what you are actually doing...you could be a consultant.
you get a gst number.....you pay quarterly on your earnings...less your imput tax credit..
Your four gst reports for the year are your full earnings..
you do your taxes...and pick an industry code that sorta matches what you do....as a business...
Do your taxes fully...take whatever tax breaks you qualify for...pay the amount owing...
You now have a fully operational business...
In year two you will receive your statement for quarterly income tax installments based on your prior year...
Pay the taxes in advance and come tax time your should owe nothing...
They don't ask you what you are actually doing...you could be a consultant.
doingdishes
Well-Known Member
you got it. just make sure your income is barely over your expenses then you'll owe almost nothing. CRA really doesn't care what you do as long as you pay taxes on it.
it's against the law to not file your taxes but it's not against the law to not pay them though
Marc Emery sold seeds so he had a business and paid taxes on it
well from the guys that are dg and growing 300 + plants they do not give tax, or charge it, the ones selling to a disp don't charge disp tax or pay any, I never did taxes for my 2 patients. now if we get to keep the dg status and or actually be able to legally sell, than we would have to set up a gst # or business # and charge tax and sell with tax from grower and patients. but mmj is not a drug nore a medicine from the gov stand point so I wouldn't do shit, a disp.cc charges taxes cause its a loop whole to semi stay in a business, imo
nsbudca
Well-Known Member
H&R Block wouldn't let me claim my MMJ from an LP this year.
itsmehigh
Well-Known Member
I was a DG for 5 years, payed my taxes and claimed expenses. Firstly you need to find patients to "designate" you as their grower, then you become exempt from cannabis laws. Not sure how your going to go about that now that there is no official MMAR to give you an exemption. You need to set up a business account to track money's coming in and money going out. This will keep track of your income, for tax purposes. You would be opperating as an "independent contractor/consultant" and on your income tax form you claim your income as "other money's earned", I was paying 4k on every 20k, it went mostly to CCP. Technically you are being payed for a service and not the final product. You need to devise a payment plan that reflects your time and not the product, for you can't actually sell the cannabis.
Hope that helps, lemme know if you have any questions.
Itsme
Hope that helps, lemme know if you have any questions.
Itsme