SoCoMMJ
Well-Known Member
The IRS does not allow deducting expenses directly related to growing. So all of those business and production expenses are taxed as well. Lease, Electricty, Nutes, systems, employees... none of it. The only way to deduct that stuff is have a related second business then lie like a mofo on your taxes about how much goes to each part of the business.Angels,
but that's how the IRS is going to expect you to account for fixed asset expenses if you have a business license and are running a commercial dispensary/grow op in an MMJ state.
That adds considerable expense for a year. As usual the government makes much more profit than the small business owner.
And don't forget that since you are dealing with Marijuana, everything related inflated significantly. Liability insurance, theft insurance, fire insurance etc etc all are much higher than normal. Even the nutes are crazy. If you were growing tomato plants it would cost you 1/10 the price.
Could you profitably grow indoor for $100 an ounce? Yes, I have made that model. But when the significant risk of prison time or a bazillion dollars in legal fees is factored in, is it worth it ? Probably not.