Colorado-Caregivers, meet the IRS, DoR - Colorado - International Cannagraphic Magazine Forums

TheReleafCenter · 07-23-2010, 09:30 PM

https://blogs.westword.com/latestword...les_top_ga.php

Quote:

Caregivers used to be able to buy wholesale from dispensaries. Now because marijuana can only be retailed at a center, a caregiver can't have retail sales tax license, so they will have to buy retail at the centers and pay sales tax on it -- and they can't pass that sales tax on to patients. However, the caregiver can charge for his or her services. If they are doing that, it needs to be properly licensed in their jurisdiction as a home-based business and reported to the IRS as a home-based income and the Colorado Department of Revenue as a service income.

cobcoop · 07-23-2010, 09:32 PM

lol

First off I haven't seen anywhere in A20 or 1284 where it says that CG's have to licensed as a home business. And since Cg's can no longer charge more than the cost to produce, there is no income to report. I'm not sure why this disp owner thinks these are new regulations, but I believe she is mistaken.

TheReleafCenter · 07-23-2010, 10:31 PM

Quote:

Originally Posted by cobcoop

lol

First off I haven't seen anywhere in A20 or 1284 where it says that CG's have to licensed as a home business. And since Cg's can no longer charge more than the cost to produce, there is no income to report. I'm not sure why this disp owner thinks these are new regulations, but I believe she is mistaken.

Neither have I, but I think she makes a fairly intuitive leap regarding running any business out of your home. Just another thing they can do to shut you down as a caregiver without you ever knowing it was a requirement.

Be informed!

cobcoop · 07-23-2010, 10:50 PM

Yeah I didn't mean to insinuate that I don't appreciate the spread of information. I just disagree with her conclusions.

TheReleafCenter · 07-24-2010, 12:05 AM

Sorry, the "Be informed!" wasn't directed at you. I don't really know who it was directed at.

07-24-2010, 12:29 AM

Good Post & something to think about. TY

Tree-Of-Liberty · 07-27-2010, 02:32 PM

How do they know that a caregiver isn't making a profit? If example some caregiver has 4 people he or she is supplying for and charging them $150 per ounce for top grade bud and the 4 people are keeping it quiet knowing they are getting a great deal, then how can the state find out?

There are still a lot of caregivers out there and most caregivers give better deals than any dispensary. I doubt most caregivers are going to comply. I'm sure there are many caregivers who have been growing and supplying people for many years and what.....all of a sudden they're going to stop being a caregiver and go out in this bad economy and try to get a 9-to-5 job to keep paying their bills and providing for their family? I don't see them doing that. I can see them maybe cutting back on their prices somewhat but their still going to make some kind of profit and I don't blame them.

There's quite a few lawyers fighting the recent new bill to get it changed and revised on the part of many caregivers and it might take months to do it but I believe the part in the bill that says caregivers can't make a profit will be reversed. My opinion is that the state officials can't squeeze the small time caregivers for money and regulate them like they can the big shop dispensaries, therefore they want MMJ people to buy from the OVER PRICED dispensaries.

It amounts to CONTROL and MONEY on the part of the state officials , the more MMJ people they get to buy from the dispensaries the more money the state makes from sales taxes.

If anything the caregiver should be favored over the dispensaries because of the fairness they provide to the patients, but we don't live in a fair world. I still believe that bill will be revised when the pressure gets hot enough.

SoCoMMJ · 07-27-2010, 07:57 PM

Quote:

Originally Posted by Tree-Of-Liberty

.....all of a sudden they're going to stop being a caregiver and go out in this bad economy and try to get a 9-to-5 job to keep paying their bills and providing for their family? I don't see them doing that.

I really don't see any way for a caregiver to consider this a full time job now. Even if your 5 patients buy a lot [2oz a month] you still can't make enough to support yourself and your family.

By the time you factor in grow expenses there isn't enough left over. If you could sell off the excess yes. But since that option is gone [legally anyways] there just isn't enough profit potential.

I have a bad feeling that there will be a lot of caregivers getting popped for sliding off the excess into the black market.

ganjherbsmoke · 07-27-2010, 08:31 PM

of course they will bc what the HELL are we supposed to do with all the extra meds we chop
i know ill be making plenty of oil/edibles but my friends who dont want to be a part of this will still find their way to my meds, what about non profit status where we each "donate" to each other lol

TheReleafCenter · 07-28-2010, 12:20 AM

The state gives you a huge loophole called "charge for caregiver services." I've heard of caregivers that are going to say a prayer for the herb. Just get creative with what your services are and align those with how you'd like to price.

07-23-2010, 09:32 PM	#2
cobcoop Puttin flame to fire Join Date: Sep 2009 Location: Horti-Pimpin ain't easy Posts: 2,979	lol First off I haven't seen anywhere in A20 or 1284 where it says that CG's have to licensed as a home business. And since Cg's can no longer charge more than the cost to produce, there is no income to report. I'm not sure why this disp owner thinks these are new regulations, but I believe she is mistaken. __________________
	Quote

07-23-2010, 10:50 PM	#4
cobcoop Puttin flame to fire Join Date: Sep 2009 Location: Horti-Pimpin ain't easy Posts: 2,979	Yeah I didn't mean to insinuate that I don't appreciate the spread of information. I just disagree with her conclusions. __________________
	Quote

07-24-2010, 12:05 AM	#5
TheReleafCenter Member Join Date: Nov 2009 Location: Denver, CO Posts: 30	Sorry, the "Be informed!" wasn't directed at you. I don't really know who it was directed at.
	Quote

07-24-2010, 12:29 AM	#6
CANNATOPIA Guest Posts: n/a	Good Post & something to think about. TY
	Quote

07-27-2010, 02:32 PM	#7
Tree-Of-Liberty New Member Join Date: Feb 2010 Posts: 6	How do they know that a caregiver isn't making a profit? If example some caregiver has 4 people he or she is supplying for and charging them $150 per ounce for top grade bud and the 4 people are keeping it quiet knowing they are getting a great deal, then how can the state find out? There are still a lot of caregivers out there and most caregivers give better deals than any dispensary. I doubt most caregivers are going to comply. I'm sure there are many caregivers who have been growing and supplying people for many years and what.....all of a sudden they're going to stop being a caregiver and go out in this bad economy and try to get a 9-to-5 job to keep paying their bills and providing for their family? I don't see them doing that. I can see them maybe cutting back on their prices somewhat but their still going to make some kind of profit and I don't blame them. There's quite a few lawyers fighting the recent new bill to get it changed and revised on the part of many caregivers and it might take months to do it but I believe the part in the bill that says caregivers can't make a profit will be reversed. My opinion is that the state officials can't squeeze the small time caregivers for money and regulate them like they can the big shop dispensaries, therefore they want MMJ people to buy from the OVER PRICED dispensaries. It amounts to CONTROL and MONEY on the part of the state officials , the more MMJ people they get to buy from the dispensaries the more money the state makes from sales taxes. If anything the caregiver should be favored over the dispensaries because of the fairness they provide to the patients, but we don't live in a fair world. I still believe that bill will be revised when the pressure gets hot enough.
	Quote

07-27-2010, 08:31 PM	#9
ganjherbsmoke Member Join Date: May 2009 Location: San Fran Posts: 114	of course they will bc what the HELL are we supposed to do with all the extra meds we chop i know ill be making plenty of oil/edibles but my friends who dont want to be a part of this will still find their way to my meds, what about non profit status where we each "donate" to each other lol
	Quote

07-28-2010, 12:20 AM	#10
TheReleafCenter Member Join Date: Nov 2009 Location: Denver, CO Posts: 30	The state gives you a huge loophole called "charge for caregiver services." I've heard of caregivers that are going to say a prayer for the herb. Just get creative with what your services are and align those with how you'd like to price.
	Quote