Dispensary Donations and Reimbursement

[Gwhergis]

I have been told here, in California, that Dispensaries will reimburse you for your time and effort in producing medicine. As great as this seems, considering the money and effort that can go into cannabis horticulture.

However, I was wondering how the state, as well as the IRS, looks upon dispensary reimbursements.

Basic Questions:

1. ) If you are reimbursed for a donation, do you have to report it as income?

2.) Are you legally supposed to cycle the money back into cultivation of medicine for donations?

3.) In your opinion, is it better to keep the money in physical form, or to place it into account

4.) Do dispensaries keep your donations on record?

(i.e Do dispensaries put your name down and the amount they have reimbursed you for?)

I want to say thank you now to all the people who have the experience and knowledge and can help me out with these questions.

 

[tngreen]

1) Any income generated must be reported. This can be done in many ways.

2) No, it was for money you already invested in the grow you were reimbursed for.

3)Physical, banks cannot accept accounts related to production yet so would have to mask it to them as a different business.

4) varies by dispensary

 

[markscastle]

It`s your money, not the dam Government`s or the Banker`s ! Keep it cash and tell them nothing as it isn`t there business !

 

[richdash]

The way I see it is that the more of us who act as outlaws the more it hurts. I would personally set up a business. Look into the laws maybe talk to an attorney and pay your taxes.... I'm much more scared of the IRS than I am of the local police department!

Also remember when you open a business account that its not the banks business exactly what your business does or sells but have a solid story for when they do ask. Don't have associated terms in the name and you should be able to get an account... I know it can be done as many of us have bank accounts and use then legally and lawfully.

 

[markscastle]

The way I see it is that the more of us who act as outlaws the more it hurts. I would personally set up a business. Look into the laws maybe talk to an attorney and pay your taxes.... I'm much more scared of the IRS than I am of the local police department!

Also remember when you open a business account that its not the banks business exactly what your business does or sells but have a solid story for when they do ask. Don't have associated terms in the name and you should be able to get an account... I know it can be done as many of us have bank accounts and use then legally and lawfully.

Paper trails . My thinking is the whole Government is corrupt and owned by Bankers and foreign investors (China). This is not the Government I grew up pledging my allegiance to. Instead I now owe my allegiance to the people of America and the Land in which we live . The Government can go to hell.