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

[Tank333]

Damn Amber. That's definitely some crappy shit to have to deal with. That's part of why I'm trying to get some good advice about it here though. This IS what I will do for the rest of my life. I am fortunate enough to live in a time when it is becoming increasingly more accepted, and in a state that has just made it legal for recreational use! An entirely new market is opening up, and I refuse to be any further behind than I already am in jumping on it. I still have another year and a half before I qualify to apply for a recreational production license, but once I can, I plan on having the resources to do at least moderately well. If I can get a piece of property with a greenhouse, I could easily pay the bills with an outdoor crop every summer. And add indoor to that as well and I'll be exactly where I want to be! Lol

 

[Theoneandonly Z]

Shit amber, really hitting home on that note. All I have to say is cover ur basics. Stay out of bank accounts and if u start up a front, make sure u have receipts and loyal friends/clients. Keep it simple silly. Unfortunately there is a BIG gray area in our business when it comes to being legit in the states/gov eyes. Watch ur spending if its in ur name and don't be stupid.

 

[GR33NL3AF]

Damn @Amber , that is horrible... Sorry for your troubles

Tank, I don't think there is an easy solution. My 2 cents, spend your money on schooling and get a proper education. So far I've invested in a Real Estate License, Personal Trainer Course/Certificate, and next learning ALL aspects of owning and operating a business.

When I was working the grind at my local Dairy I saved every penny, I was living at home. I bought a house and invested in several business ventures before I walked. That was 2 years ago. Now I grow and sit back and collect an income from my investments, legit investments.

 

[Welshwizzard]

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

I do think this is a very appropriate response.

 

[Welshwizzard]

@Amber Wow that is some very harsh reading man, undoubtedly doesnt represent a fracion of the shit you've been through.

How was it they came to know of you and your set up? Are you a pretty prominent/ well known person in the community?

I'm no where near the level of you guys with set buyers, and I wouldn't want to be really. I have a legit job, baking stuff which is cool. Pathetic wage, that however, is what gets taxed, and will allow me to own a home. Every month or two I put under a grand into my account from gardening. Slowly adds up. It's shit, but you have to have something to show for your earnings over here or you get fucked with a proceeds of crime act.

 

[Texas Kid]

Your over thinkin it, makes some money first, that is the best place to start and then worry about what or if your goin to declare it as income..not sure what kind of scale you talkin about though

 

[Tank333]

Small scale for the time being. Enough to pay the bills and set some aside for the kids' college. I've got 4kw now with plans for at least one more flower room of the same size. So far I'm getting a little under a p per kw per harvest. I would like to at least double that before calling it "dialed in".

Once I'm able to apply for a commercial license, I'll probably do a fuckload of outdoor though... I've got at least a year and a half before that, though.

 

[Texas Kid]

I wouldn't even worry about and depending on the state you probably won't be able to use your existing property for any commercial growing anyways..everything will change in the next year and a half for sure

 

[soserthc1]

best bet if not growing and afraid to take the chance would be plant and business education , this would get you the jump your looking for in the industry at least paper wise but you really need to work with and have a passion for the plant - its not really a book thing besides the terminology

 

[Tank333]

I wouldn't even worry about and depending on the state you probably won't be able to use your existing property for any commercial growing anyways..everything will change in the next year and a half for sure

Well, here in Washington, they will allow indoor growing, but not inside a residence. Applications for existing farms zoned for agriculture wanting to convert to cannabis growing will be accepted by the LCB. So I'm assuming if I wanted to do indoor commercially, I would have to do it in an outbuilding, not in the basement and spare room like I have been doing.

You are right though. EVERYTHING will change in the next year and a half. Lol. I definitely plan on keeping abreast with all the adjustments the LBC will make over the next while. Working our the kinks in this will be an interesting job!

best bet if not growing and afraid to take the chance would be plant and business education , this would get you the jump your looking for in the industry at least paper wise but you really need to work with and have a passion for the plant - its not really a book thing besides the terminology

I'm definitely not scared to be growing. I've got 4kw in the basement now in a 6x10 space, and plans for blowing out the upstairs spare room with 4 hoods and either thouies or 1,500's in em. I'm just not trying to get caught up a few years down the road and get slammed with tens of thousands in back-taxes. Lol

I do plan on taking some classes though. I want to take some plant biology and water chemistry classes. I would like to get an electrician's certification, but that's a LOT of work getting all the hours of experience they want for that. I would also like to get some experience with HVAC too...

 

[connoisseurde420]

just wanted to add that I know several business owners who put me on payroll 1-2k per month when I need it. I give them cash and they cut me a payroll check. the biz varies but they all do over 1k per day so what I'm adding is nothing. this way I have source of income for a house and or renting properties. Definitely money laundering, but chances of getting on the irs radar is low. if anything they would look at the biz and owners, not me. Creating company is alot of work unless your doing numbers trying to clean it. If ur small, pay everything u can cash, report the least amount u need to for whatever u r aiming for..

 

[Amber]

Shit amber, really hitting home on that note. All I have to say is cover ur basics. Stay out of bank accounts and if u start up a front, make sure u have receipts and loyal friends/clients. Keep it simple silly. Unfortunately there is a BIG gray area in our business when it comes to being legit in the states/gov eyes. Watch ur spending if its in ur name and don't be stupid.

Loyal friends...lol. When you find out who your loyal friends are you will be amazed, at least I was.

 

[Amber]

@Amber Wow that is some very harsh reading man, undoubtedly doesnt represent a fracion of the shit you've been through.

How was it they came to know of you and your set up? Are you a pretty prominent/ well known person in the community?

I'm no where near the level of you guys with set buyers, and I wouldn't want to be really. I have a legit job, baking stuff which is cool. Pathetic wage, that however, is what gets taxed, and will allow me to own a home. Every month or two I put under a grand into my account from gardening. Slowly adds up. It's shit, but you have to have something to show for your earnings over here or you get fucked with a proceeds of crime act.

"Loyal friends"...lol

 

[kolah]

Tank? are you saying a guy or gal can't grow a few plants in the house or in their garden? I though WA "legalized" it.
That's crazy.

 

[sky high]

WA legalized a similar sales/ tax scheme as CO did....but didn't include a personal right to grow in the equation.

 

[sixstring]

Well here in michigan my accountant says you cant pay fed taxes on anything that is illegal federally, and in fact its worse then not paying taxes.i feel the same as you tank, just want to pay my fair share.but in the bigger picture you also need to think about how you will get an income when your old.cant collect ss or retirement if you dont contribute right ;)
Im hoping they wise up and De classify weed so we can pay our share some day.
I own my own biz and we buy and pay taxes on most our supplies, because it goes well with what I really do for a living.but we dont try to write off anything from sales.
But dont feel bad, plenty of hair stylist s and waitresses that dont declare everything and the irs knows about that lol.

 

[Tank333]

Tank? are you saying a guy or gal can't grow a few plants in the house or in their garden? I though WA "legalized" it.
That's crazy.

Yea, they only legalized commercial growing for recreational cannabis. As a medical patient you can still grow your own, but Joe Blow stoner must wait till May to buy legal cannabis for recreation. :(

 

[Theoneandonly Z]

Loyal friends...lol. When you find out who your loyal friends are you will be amazed, at least I was.

after re-reading my post i noticed i didnt seperate the paragraphs and it came off that my whole post was directed towards u. that wasnt my intention. the only text in which i was replying with you was the first sentence or two. I apologize for any misunderstanding.

never the less, thanks for sharing your story. im the type of person that looks at every situation with the worst possible outcome so that way i can always be prepared and help prevent future trouble. unfortunatley i havent perfected this technique and still learn the hard way when it comes to some things. It takes posts like yours to really open my eyes and understand scenarios. Thanks

 

[Ohiofarmer]

;)This is most definatly the wisest and most practical way to do it.

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

 

[delae632]

;)This is most definatly the wisest and most practical way to do it.

Until you end up in court for money laundering and tax fraud.:eek: