Tax question for legit farmers

[calibrian]

Here in San Diego, it's a new age of business. Marijuana is flowing like never before and become a legitimate taxable gross income. My question is, for any farmers in this situation, how would one go about filing taxes for such a trade. I'd imagine it would be quarterly or per harvest. Is it even legal yet? Does H & R block handle this? Can weed finally be a tax write off or american commodity? Whats the word on this, does anyone know?:harvest:

 

[motherlode]

the word is:

dont

you should be able to claim a deduction as its medicine, but dont think the feds will go there (not 100% sure on that)

as far as income - no fucking way

 

[Steve Z]

its legal so i can grow it and sell it


is that what people seriously think now a days???

dude its legal so you dont have to buy it on the street, get held up by drug dealers with guns, people that deal yayo and crack. come on dude it was legalized as a marketing enterprise....?? if you think so i'd suggest moving up to oakland and chillin with all the pro prop 19 guys.... they all want money and not weed too..

there shouldnt be tax on personal medicine. tell them to go fuck themselves if they ask

sz

 

[ItalianBudz]

Unwanted attention is always a bad thing! technically its not legal anywhere according to federal law so i would take the blinking neon open sign down!:anim_09:

 

[calibrian]

lucky for me I don't have one stitch of any illegal operation in my house. I'm just asking questions as to how things are done in a very new time. If the cannabis movement has not gone far enough to help give our struggling economy get millions of $$$ every year, then I wont. more for me. uncle Sam is a dumb ass if they don't wanna wise up then next biggest business in Cali. I just wanted to do the right thing in what I hope to be my future company, but if they don't want my taxes with out calling me a criminal, fuck 'em.:bongsmi:

 

[Carson]

Billable hours is an avenue to explore.

 

[ItalianBudz]

lucky for me I don't have one stitch of any illegal operation in my house. I'm just asking questions as to how things are done in a very new time. If the cannabis movement has not gone far enough to help give our struggling economy get millions of $$$ every year, then I wont. more for me. uncle Sam is a dumb ass if they don't wanna wise up then next biggest business in Cali. I just wanted to do the right thing in what I hope to be my future company, but if they don't want my taxes with out calling me a criminal, fuck 'em.:bongsmi:

church!!!! i was just quoting the fbi guy off marijuana inc! they have no idea what there doing as long as there crooked pockets are filled there happy!:mad0233:

 

[calibrian]

church!!!! i was just quoting the fbi guy off marijuana inc! they have no idea what there doing as long as there crooked pockets are filled there happy!:mad0233:

that sounds about right

 

[strictlyOG]

i wouldnt even bother with the tax write off unless your providing legitimate paperwork as a caregiver who is supplying the medicine to a club/clinic. and your not charging them for the medicine. your just charging them for the time/nutes/equiptment/electricity cost. and that can be at what ever rate you would like to give em at.. lets say 1lb. cost you $4000 since this is a non profit organization you would only charge them $4000 since that was the how much it cost you with the time/nutes/equiptment/ and electricity cost etc. hope that helps out.

 

[calibrian]

i figured if I was gonna do it, I would file quarterly or after every harvest. Save my receipts as business deductions and file as if it was just a privately owned business, cause it would be. But once again, I don't even know if this type of revenue can be accepted as legit or not. Regardless of us being able to grow and sell it legally, I still don't know the rules about involving the government. So far it's looking like a big "hell no!".:harvest:

 

[calibrian]

I found this form online, this actually coves a good amount of what I was asking. for any one looking for information regarding taxes and cannabis, read the form found in the link provided below.

 

[Bearsfather]

Open an LLC with the government... then have an accountant give you tax information...

 

[VA Hopeful]

And that last response from Bearsfather is the best advice you are going to get.

Look at all the CNBC shows they are doing on dispensaries this past year - every single one of them says they are paying sales tax to California, and other taxes to the Federal Government.

Definitely create a legitimate LLC (Limited Liability Corporation) and consult an accountant - but not in that order, consult the accountant first, as they can advise you better on what type of corporation or other business entity you'll really want to create for this.

Last - remember, even if you don't *ever* do any business, it's a smart idea to always have 1 or 2 LLC's created for you - that way if you ever decide to go into business, any vendors can see you've been in business for years & years, banks see the same thing, etc., etc. I learned this long ago when a company I owned failed - yes, good honest people can have companies fail - always have another established corporation of some kind ready to start doing business that has been around for some time, they are all kinds of tax advantages.

1.) See a GOOD CPA.

2.) See a GOOD attorney who has experience in this field - and between the two of them use their advice on what kind of business entity(s) to create.

Good luck, and give Bearsfather a big THANKS for his excellent advice.

 

[calibrian]

And that last response from Bearsfather is the best advice you are going to get.

Look at all the CNBC shows they are doing on dispensaries this past year - every single one of them says they are paying sales tax to California, and other taxes to the Federal Government.

Definitely create a legitimate LLC (Limited Liability Corporation) and consult an accountant - but not in that order, consult the accountant first, as they can advise you better on what type of corporation or other business entity you'll really want to create for this.

Last - remember, even if you don't *ever* do any business, it's a smart idea to always have 1 or 2 LLC's created for you - that way if you ever decide to go into business, any vendors can see you've been in business for years & years, banks see the same thing, etc., etc. I learned this long ago when a company I owned failed - yes, good honest people can have companies fail - always have another established corporation of some kind ready to start doing business that has been around for some time, they are all kinds of tax advantages.

1.) See a GOOD CPA.

2.) See a GOOD attorney who has experience in this field - and between the two of them use their advice on what kind of business entity(s) to create.

Good luck, and give Bearsfather a big THANKS for his excellent advice.

well, shit man. good news all around! thanks!

 

[Seamaiden]

Here in San Diego, it's a new age of business. Marijuana is flowing like never before and become a legitimate taxable gross income. My question is, for any farmers in this situation, how would one go about filing taxes for such a trade. I'd imagine it would be quarterly or per harvest. Is it even legal yet? Does H & R block handle this? Can weed finally be a tax write off or american commodity? Whats the word on this, does anyone know?:harvest:

You cannot take it as a farm write-off if you're not moving it, i.e. selling it. If you are, then I would consult both an attorney and a CPA, because there will be a whole mess of deductions for you. The state and IRS will love you for your self-reporting, too.

I have friends who pay taxes on such income elsewhere in the state, as a business/farm.

 

[Blaze]

Start another business that is non-cannabis related and funnel the money through that. Telling the IRS (read Feds) that you make money of growing cannabis is not too smart IMO. It might be legal to sell it on the state level, but it is NOT legal on the federal level.

 

[CalcioErba2004]

If you don't grow massive amounts where you will be making more than 250k a year then what you should do is open a business and claim you are self employed. Make up pay stubs to yourself and do a 1099. Doesn't matter what you file the business under. I agree with Blaze, don't tell them you donate or sell cannabis, its still illegal. They won't come looking for you if you pay them something and your lifestyle does not exceed your reported income too much. IE don't make 60k a year and drive a 70k dollar car and live in a 5bdr mansion in malibu. Consult and attorney(you should have one anyway in this game) and ask your attorney for good CPAs that deal with this type of business specifically.

 

[mastacheeser]

my father work for the irs and in his words "if they put down they are selling meth we dont care, as long as they pay taxes on their meth"
if your trying to go hardcore legit i recomend starting with putting a lawyer on retainer. he would give you the best advice on this situation and prob know the best cpa to go to

 

[Bobby Smith]

my father work for the irs and in his words "if they put down they are selling meth we dont care, as long as they pay taxes on their meth"
if your trying to go hardcore legit i recomend starting with putting a lawyer on retainer. he would give you the best advice on this situation and prob know the best cpa to go to

^^^^What he said.

The IRS doesn't care if you get paid to rape babies (as long as you report your income and pay taxes on it).

If I was legal, the last thing I would be doing would be trying to hide my income from the IRS - call yourself a consultant/independent contractor and report as much as you can afford to.

 

[Bobby Smith]

If memory serves, Harborside is currently getting audited by the IRS - if I were one of you guys/gals, I'd be paying pretty close attention to that process and what exactly is getting deducted - could save you a boatload of money.

Slightly off-topic but relating to taxes - IF ANY OF YOU BOUGHT A MINI-SPLIT IN THE PAST YEAR (2010, and possibly 2009 as well but double-check that) THAT IS EFFICIENT (I think 16 SEER and above, but double-check that), YOU CAN CLAIM A TAX CREDIT FOR 30% OF THE TOTAL COST TO PURCHASE AND INSTALL THAT UNIT (even if you performed the install yourself).

Happy holidays :)