Dispensary wants me to fill out a 1099 form?

[reddy1]

i'm in michigan, this is a non-profit club that i'm possibly going to sell my overages to. paying taxes kind of legitimizes my income and trade which could grandfather me in to a system. but also places me on the federal radar.

would you do it? am i an idiot for even considering it? anybody else do 1099s?

i really like the place and their products. they are from what i can tell 100% compliant with the current laws in a pretty safe market.

 

[Finepointcanon]

Hmm... sounds odd to me. The very nature of non-profit implies that there would be no income, and thus no taxable revenue, to declare. I'd go somewhere else, personally.

 

[Classic Seeds]

if you just listed your profits from as agriculture and were not specific on what your growing you should be safe people in california long time ago that were smart did that .payed their taxes and were able to use the money for legitament things without any hassles but look into what you have to say on these forms look before you leap but clean money is a good thing to have aloha

 

[PuReKnOwLeDgE]

I have an accountant in MI who specializes in helping caregivers, proud owner of an "agricultural production" LLC here. Still working on getting the books squared away due to taking inventory of all the grow shit I have...but will be 100% soon.

 

[tr1ck_]

Hmm... sounds odd to me. The very nature of non-profit implies that there would be no income, and thus no taxable revenue, to declare. I'd go somewhere else, personally.

If you are want to be 100% legitimate you HAVE to pay taxes IMO. Almost all non profits still have revenues and expenses, they just don't keep profits, they just roll excess revenue over for future expenses, or to pay their employees salaries. They may be a non profit, but the owners still could be getting paid something silly like 6 figure salaries.

I guess one of the most important question would be how much do you plan to unload on them per year? If its small (Like under 5k) I probably wouldn't deal with taxes, Above that I would just go the 1099 route, and if you plan to be making tons of cash, I would suggest you go talk to a lawyer and/or accountant in your area to get things truly squared away.

 

[Chem&M]

Im in CO, but I'll tell you this, unless I decide to take one of the warehouse jobs I'm looking at, I'm not even going to register with the state next year. I'd rather renew my Doc's recommendation every 6-9 months instead of worrying about my door getting kicked in.

 

[Duplicate]

This may or may not be related.

Taxation of Illegal Income

I'm not implying that your income is illegal, just something to consider.

 

[Rednick]

You are an independant contractor. Non-profit has expenses, not 'profits' per se.
Your 1099 will link you to the Fed Tax ID #, should the coop get audited.
No big deal, IMO. You are trying to do everything 'by the book' under state guidelines. Even if there is a Federal backlash with an executive change, you are probably small fries.

That is what a lot of people in Colorado were going to do, until HB-1284. Now you either don't pay taxes or form your own LLC to pay them. You only 1099 if you are contracted to work in the MMC's warehouse, no offing overages.

 

[etinarcadiaego]

First off, you have nothing to worry about.

Secondly, please look at the form and let me know what comes after the "1099" as there is more than 1 flavor or type of 1099, some are specific to Real Estate, or Pension payments, etc.

But a 1099 (most likely a 1099-MISC for Non-employee Compensation) for this type of thing is NOT uncommon at all, a 1099-MISC form is basically for entities or businesses who are paying a non-employee for good/services AND intend to report that payment to the IRS. The 1099 provides you, the non-employee, with a record of that compensation so you can pay taxes on it.

1099s are routine in some places for dispensaries, and I know of others who have received them for similar reasons. Nothing to worry about.

 

[Guest 150314]

I have an accountant in MI who specializes in helping caregivers, proud owner of an "agricultural production" LLC here. Still working on getting the books squared away due to taking inventory of all the grow shit I have...but will be 100% soon.

So you can write off your equipment? That's pretty damn cool I must say.

 

[vaped]

Our Lawyer directly told us not to pay taxes on the marijuana sales because that was admitting to the federal government we were selling an illegal sched 1 narcotic. Even if you say agriculture when audited you will have to be more specific. He next told us we were in no way shape or form required to incriminate ourselves to the government. If done properly and within the state laws no marijuana is actualy sold. He said if we opened a dispensary to sell other things like pipes papers rolling trays and offer services like massage. He said to report that income only. Keep all the "Marijuana" money seperate and only accept "Restocking" donations for that product. He also said a narcotics trafficking charge would look way worse on my record than a tax evasion charge. Bottom line no matter how legal you are you dont want it to look like on paper you make a good living from pot or you are a target. I wouldnt sell to them Keep your room leagal and your finances private.

 

[vaped]

So you can write off your equipment? That's pretty damn cool I must say.

Also if you do get audited your deductions are no good and potentially tax fraud because the tax code says you can not use any deductions when filing taxes on money procured through the sale of Ill. Narcotics. Danut has a thread where he explains it better on the mmma website.

 

[]A[Boss]

tellem to shove it

 

[ZZTops]

Run Forest...

 

[TruthOrLie]

i dont like doing 1099 on legal money

i think if you fill that out and supply that shop, if they get raided, your paperwork is what they're gonna show the DEA when they ask who supplies what.

setting yourself up for a big letdown

 

[Gooey]

think we all know what shops you are talking about....been in this spot myself....i am with vaped...i am not going to be incriminating myself...they tell you at these places its str8, no worrys but i think as my man is saying...trafficking or taxes you pick....stay safe...get a consulting bizz...consult...only take cash...etc etc

 

[supermanlives]

hell no

 

[JJScorpio]

If you fill out the 1099 you will get a W-2 for the income you made. The company will then deduct the income from theirs before paying taxes. They will also include a copy of the W-2, and all others with their Federal Taxes. You will also have to include yours as earned income when you do your taxes.

In my opinion that would be prima facia evidence of your guilt for not only growing, but selling Cannabis if the Feds wanted to pursue it.....

You're violating the law if you don't, but possibly getting convicted should something happen......

 

[TruthOrLie]

If this was some people you knew and trusted your future with, then go for it, maybe.

 

[PoopyTeaBags]

i'm in michigan, this is a non-profit club that i'm possibly going to sell my overages to. paying taxes kind of legitimizes my income and trade which could grandfather me in to a system. but also places me on the federal radar.

would you do it? am i an idiot for even considering it? anybody else do 1099s?

i really like the place and their products. they are from what i can tell 100% compliant with the current laws in a pretty safe market.

i do not get 1099 from my dispensary however i did start a llc this year.. michigan is protected by the right to farm act and this allows us to start a business and claim income and have an actual business... This year will be my first time my business is under agricultural production... they dont ask you what you produce...

i dont like the fact the club is 1099 ya but thats probably what its all gonna come down to in the end anyways....