Grow for a living? What do you report for taxes?

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Tank333

Tank333

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So, I'm working on making the transition from working as a wage-slave to solely relying on my growing for an income. I've never really given much thought to what I'm going to report for income over the next few years though. While it's legal for medical patients in Washington to grow their own meds, there's no real clear guidelines for donating your meds to dispensaries yet...

So I'm asking what you guys report for an income? Do you have an income on the side that's legitimate and you don't report your growing income? Or do you own a business that is the cover for your real income? Or do you just report what you make, but label it a bit deceptively?

I WANT to pay my fair share of taxes. I'm not trying to be some black-market drug dealer who's not contributing his fair share to society. But I'm also not trying to get the feds kicking down my door because I reported income from growing and selling cannabis.
 
soserthc1

soserthc1

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Well sticky situation you got there especially with the current status of Wash trying to take away disp's and replace with there own - so doing the right thing could get you on the radar and fucked - personally I really don't exist on paper anymore - kinda sucks as bank account no - retirement funds going up - no ? homes in my name - no ...... but no longer do i bust my ass making the corporate bean counters rich anymore and to be quite honest life is much better doing your own thing ..... i will never say that a homemaker is not a occupation anymore thou as there is alot involved in keeping a home in shape day after day .... but its now family first - not work ...until the federal gov't takes marijuana out of a schedule 1 category i don't care were i live i will never put my name on a paper saying i grow mj
 
K

kolah

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What do you enter in your tax forms as "occupation?"

And just some FYI, giving false info (perjury) on a tax form is a felony.

Hiding it into another business is considered laundering and it will easily get you 6-10 years, maybe more. I know a few peeps who work in banks and they are trained to spot that kind of stuff....and will report it. If they see large deposits coming into " Joe's Penny Bubblegum Store" it is considered "suspicious."

Some folks just claim it as misc income. ;)

and BTW, IMO detailed ONLINE/INTERNET discussions about this type of thing are not too safe.
 
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fishwhistle

fishwhistle

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Oh the IRS has thought of everything,no worries.

"Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity"

Just list the amount and how you got it right there on line 21.
Dont ask me how i know this,LOL.
 
Cort

Cort

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I once talked to a guy who listed "panhandling" as his income source. Under reported his income to say the least. He got food stamps, his woman got wic and all the welfare etc...
 
organicozarks

organicozarks

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Start a "landscaping" company. Go online and file your LLC paperwork, and your sales tax permit if required. Then you are "legal"
 
fishwhistle

fishwhistle

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Start a "landscaping" company. Go online and file your LLC paperwork, and your sales tax permit if required. Then you are "legal"
Sorry but you are wrong,you would be laundering money at that point and leave yourself open to an even worse crime than tax evasion.
What do they get 40 or 30some percent. Is spider mites a write off?
You cannot take any losses or expenses incurred against income obtained from an illegal source which is why the dispensary game is so hard to play.
 
K

kolah

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Start a "landscaping" company. Go online and file your LLC paperwork, and your sales tax permit if required. Then you are "legal"

According to the IRS, that is perjury and money laundering. Kiss your wife goodbye and say hello to Bubba.

I think something like "Farming" or " Gardener/Nursery" may be more appropriate.

I find it just a bit strange you want to share your hard earned labor (which is still illegal) with an illegal outfit called the IRS..and very unconstitutional as well. But hey, to each his own.

If you want to "pay your fair share" just donate money to the IRS. They'll take it.
 
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waayne

waayne

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fishwhistle is right on point about this info

This is why when the FEDS say they are only going after dispensaries that are breaking the law......they can go after any of them,there are no write off's or deductions for growers,collectives, or dispensaries....according to the IRS
tax code.......
 
waayne

waayne

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That's right fish, there are zero deductions for Canna businesses
If you lie to the IRS and say you're doing floraculture ,they can get you for tax fraud,if you don't file and pay all the taxes they get your for tax evasion

It's a slippery slope dealing with the IRS, if you don't believe me,just ask Steve DeAngelo, or Richard Lee.........
 
organicozarks

organicozarks

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Alarmist much? Mow a few lawns, and plant a few plants, and you are legit. It is much easier than people think. Many people have been doing this shit for decades. The best thing to do is as time goes by invest in your Company because your illegal growing will only last so long. There are many large Companies started form illegal proceeds.
 
sanvanalona

sanvanalona

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I was under the assumption that the 280E only applied to certain aspects of running a business and cost of goods (cog) were not apart of that and therefore dispensaries are allowed to claim profit of incoming product but are not allowed to deduct anything else.

I am surprised that the government does not address the issue of taxation for mmj growers as there is quite the loss of revenue from the sheer number of people who would like to pay taxes but don't know how.
 
Tank333

Tank333

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I am surprised that the government does not address the issue of taxation for mmj growers as there is quite the loss of revenue from the sheer number of people who would like to pay taxes but don't know how.

This right here man! I'm okay with paying my taxes. I like having roads to drive on that aren't falling apart, I like having schools to teach our children, and I like having police and fire departments to protect us as a society. While there are things that have gone very wrong with all of those things, not paying my taxes isn't going to fix it. Lol. I have a responsibility to pay into the services I use and will use in the future when needed. (Like SSI, and medicare, etc.)

But I'm not going to do it at the expense of my freedom. Lol
 
Amber

Amber

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This is a great thread. It's so hard to do so many things without being able to provide tax information, pay stubs and bank account information. I know that the lawyer fund is the one I wish I would have kept full if I could do it all again. When it comes right on down to it they can take it all in a instant and if you are lucky enough to have the 20 grand to get out on bail you are gonna wish you had that minimum of another 20 grand for a decent lawyer. Meanwhile back home you gotta get building permits to go in your house to fix the electrical issues that made them cut your power off at the pole. Have electrician come out and then the inspector followed by pg&e to run new lines from the pole. That is just so you can legally go inside your house which was also robbed while you were in jail because the cops did not bother to even close the house up and they posted online your charges and incarceration status with a address on a map even for anyone that was interested. A year later still paying lawyers constantly you are taken back into custody the judge doubles your original bail because he says he thinks your a danger to the community. WTF I kinda thought of myself as a good contributing member of the community I generate money and spend it locally I paid taxes. Anyways maybe its all the debt that I have accumulated over such ordeals but I think that this is a decent way to make a living so much anymore. I am probably gonna loose my house soon and will be homeless, pot grower (good pot grower if that matters), 2 really nice pit bulls, shitty credit due to huge loss on the home that I lost being worth half as much as I owe on it. Obama refi? Sure we just need your pay stubs, taxes for last 5 years, bank account information. Does anyone want to rent a place to a couple of hippies with no jobs, no rental history, bad credit, and 2 really nice pit bulls? My mom says I need a new career, shit after 15 years of solid full time devotion to this passion I wonder what I will be. Its all I know how to do. I suppose I could go flip burgers for a living but I'm not sure that gonna cut it with all these extra new bills in the tens of thousand dollar range. What is the annual income for a burger flipper? Would it pay even one of my current bills?
 
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