Center open and looking for meds from RI caregivers

[shemshemet]

Keep cuts and grow what they say....classic freedom movement stuff, eh?

Horrible for the community I say.

Would like to hear your ideas, rather than the bad ones. I know there is a Rhode Island Caregiver Connection or something like that. Has some good ideas, keeping medicine under $200 an ounce. Test caregiver medicine. Stuff like that.

 

[Calixylon]

Id like to know how a dispensary feels the need to charge triple the amount the paid for meds? What overages to they deal with, your selling weed, it sells itself. To try and justify your companies buisness to a bunch of farmers is stupid. We deserve the overhead for the risk, lighting, nutrients, space and time. Farmers always have been fucked whether it's weed or tomatoes. But your compassion center is raping patients, they shouldn't be allowed to make their prices, or at least not charge more than double what they pay. 100% profit is great, jut cuz your greedy and want to make 300% profit is BS. The east coast weed game sucks, unless you grow your own, your getting fucked over, period.

 

[shemshemet]

Calixylon-

I definitely agree with your points.

We can't profit from out grow, just get reimbursed for costs. Yet we can only receive whatever the compassion centers want to give to us. So if our costs are higher than their prices....

Rhode Island doesn't care about individual growers, and that is the case. RI has tried to phase out individual growers multiple times, and the laws seem to tighten every year. There are 3 compassion centers for the state and that is where Rhode Island is focused.

Free trade? Fuck it. Nothin' better than an oligopoly! Right national grid? Cox, Verizon, can you hear me?

 

[Calixylon]

Honestly I live my life according to what I believe is right and wrong. I've done stupid things, and bad things, but I've learned from thAt. I've been to jail, not for growing but for failing UA'S so when it comes down to it I'm willing to go back if need be, because of growing. Hopefully it won't happen, but if the entire east coast keeps pushing medical patients to buy shitty uncured crap buds, that have been rushed to the market, why you ask? Because people will still buy it. I understand NE not wanting to be like Cali med scene but damn, there making us go underground again.

 

[motherlode]

As a business, 'growing costs' would be an expense. So yes, if you use money that you lend to your business for an expense, then you have to report that money. When you take back the money from the business, you are now tax free.


You lend 600 to business.
Business spends 600 on growing expense.
Business takes in 600 on growing expense. (income from business, fill out your 1099 now!)
You take back 600. (reimbursement, no tax)

This is basic stuff tax people have been doing for ages, and I really am not good enough to get fancy with it.

As for if you make more than your expenses? I don't think ANYBODY is prepared for that situation. Hide the money....

except its NOT a business

 

[shemshemet]

except its NOT a business

Even still, the tax principals apply. You'll still need to report it as income, albeit income that was used to reimburse growing expenses. So yeah, you're right, you'll end up paying double taxes. Could add that to your growing expenses though, and raise prices based off that. You'll never end up catching up though, because of percentages?

You earn $1250.00 at your job.
TAX TIME you lose 20%.
Then take the $1250.00 and use it as growing expense.
Then you earn $1250, must report as income, taxed AGAIN.
But if you instead have your patient give you $1250.00, you almost make up for the 20% (random tax figure I made up).

First Example
+$1250.00 Earned through full time job
-$250.00 Taxed out of payroll
-$1000.00 Growing Expense
+$1000.00 Reimbursement
-$200.00 Taxed from 1099
You are out $200.00, thank you USA.

Second Example
+$1250.00 Earned through full time job
-$250.00 Taxed out of payroll
-$1000.00 Growing Expense
+$1250.00 Reimbursement
-$250.00 Taxed from 1099
You have broken even.

It is fucking messy man, and I expect it to be for a while.

 

[waayne]

@shemshemet You might want to familiarize yourself with IRS Code Section 280E........

 

[shemshemet]

No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.

So nobody can take a tax credit, but does that mean you still can't report the income? From what I see you just can't take a tax deduction for it.

http://www.forbes.com/sites/anthony...uctions-for-state-legal-marijuana-facilities/

So yeah, it is super high taxes, that all the lawyers in the land want to crack.

Thanks waayne, that is extremely relevant and probably more important than this 1099 shit.