Dispensary wants me to fill out a 1099 form?

[vaped]

I guess I can understand someone wanting legit money it just scares the bejesus out of me when it comes to the feds. who knows who will be the president in a few years or what his possition will be. My possition right now is the state has no way of knowing that i grow anymore than 2.5 zips per patient or that i dont give my meds away for free. Untill the state can proof all that stuff i really dont want to give them a 3rd of my profits. Right now im selling my meds to a shop for $250 an O.Z. After electricity,hydro shop and all the upkeep of the grow room I estimate it costs about $100 a zip to produce. In the end Im only making $150 on average per zip im not getting rich and feel way more comfotable just living in my trailer house flying below the government radar.

 

[vaped]

Any Corp can become not for profit and still make a killing. People can be paid salaries big ones at that. The corp. just cant make tons of money on paper and a certain percentage of profits must be donated. Now an employee and the corp are two different things employees can bankroll off not for profits.

 

[Rednick]

YOU ARE NOT AN INDEPENDENT CONTRACTOR.

You are a wholesaling vendor selling to a retail outfit. Think of it this way, do you think Nike gets 1099ed by Walmart for selling shoes? No.

The dispenso is trying to pass the buck onto you. So that 3k item actually turns into a 2.3k item when tax time rolls around.

Hire a real accountant and ask about costs of goods sold. Don't just accept what people tell you; find out for yourself.

If you 1099, you are an INDEPENDANT CONTRACTOR.
If you have a LLC and/or have a wholesale tax license then you are a business entity.
http://www.colorado.gov/oed/industry-license/360IndDetail.html

Oh FUCK!
There's the DOR again.

Remember CIA stands for Cover Your Ass.

 

[Hydrosun]

The real truth is you owe tax on $250 to the feds not tax on $150 google search IRC 280e or see:

http://www.mmballiance.com/2010/11/tax-laws-as-relates-medical-marijuana-businesses/

very scary stuff.

 

[vaped]

Man I owe alot of people shitloads of money. My credit report is almost a comedy. The feds wont be getting there cut off this untill they loosen up a bit. On paper I look broke as a joke the neat part is if they ever come an audit me I even look broke as a joke in real life. The only nice thing I own is my polebarn. 91 astro van, 72 honda 750, a few junk cars and a junk boat just to keep my property taxes down. I would rather have nothing than give our corrupt government a piece of anything.

 

[RaNgEr RiCk]

If you want to sell overages to a dispensary then you should expect to pay taxes on it. In Michigan this will be part of the system once the lawmakers get their shit together and put some regulation in place. It's just a matter of time.

 

[zenoonez]

you will find that theres plenty of ways to use that cash....especially with growing you are always re-investing in your grow at least the smart ones do...hydro shops always take cash.

Oh I understand reinvestment, I also understand the need to diversify your earning potential and the need to pull money out of a short term federally illegal endeavor into a long term legally sound position. We all know that growing weed for profit is only going to last as long as it is a black/grey market unless you want to buy a combine and move to Nebraska. I would love to grow weed for a living but doing it over acres and acres is probably not my cup of tea.

 

[JohnnyHopkins]

delete

 

[Hydrosun]

If you want to sell overages to a dispensary then you should expect to pay taxes on it. In Michigan this will be part of the system once the lawmakers get their shit together and put some regulation in place. It's just a matter of time.

Why is that? Almost every farmer in America is flat broke and pays ZERO income tax.

Isn't a more reasonable public statement, "If you generate income from farming and selling cannabis you should expect to pay tax on the INCOME."

I've been waiting my entire life to see lawmakers get their shit together, glad to here it is just a matter of time now.

 

[headband 707]

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.

Yeah they do that here but most if not all of the growers don't sign it lol peace out Headband707

 

[headband 707]

Why is that? Almost every farmer in America is flat broke and pays ZERO income tax.

Isn't a more reasonable public statement, "If you generate income from farming and selling cannabis you should expect to pay tax on the INCOME."

I've been waiting my entire life to see lawmakers get their shit together, glad to here it is just a matter of time now.

Do you really think our Gov cares if were flat broke LOL LOL... If they think your making any cash and they don't have their hands on it that just won't do .... peace out Headband707

 

[Hydrosun]

Do you really think our Gov cares if were flat broke LOL LOL... If they think your making any cash and they don't have their hands on it that just won't do .... peace out Headband707

Even more reason to be as NON-COMPLIANT as possible, because once they get their hooks into you they will never let go or accept less money than the year before.

 

[medmaker420]

wait... we are supposed to be paying taxes this whole time?

well shit, someone should have told me...

50% of americans don't pay taxes and the other 50% pay em and bitch about the other 50% who are bitching at them for having enough money to pay taxes.

wait what happened.

 

[wildwahine]

Need advice re: Calif. Tax & 1099 Misc...

Need advice re: Calif. Tax & 1099 Misc...

Aloha All!

This is a question for growers/vendors in California who sell to dispensaries: I sold to a legit dispensary last year and received a 1099 Misc. tax document that I have to file with the IRS & State, but I want to avoid an audit! I read that in order to claim deductions against the 1099 Misc., you need to file a "Schedule C", and that by doing so, your chances of being audited DOUBLE! Yikes!

I've been online for days trying to find answers, and I still don't know where to turn.

If anyone out there knows about this or can point me in the right direction, I'd really appreciate it!

 

[wildwahine]

Please elaborate re: taxes...

Please elaborate re: taxes...

I registered as cannabis provider with the IRS.
I have an EIN number.
I dont break the law and pay tax.
My two neighbors also do the same for years.

Aloha JT:

I'm in CA and got my first 1099 Misc. to file with my taxes... I've heard in order to claim deductions, you have to file a Schedule C, and that DOUBLES your chances of being audited!

Plus, there are other reasons I'd rather not raise any red flags... recipient of federal benefits, etc.

I'd really appreciate any info you can share about this, or point me in the right direction... thanks!

 

[JayTrinity]

I talked to a lawyer who said the 5th amendment protects you from incriminating your self, so you dont have to put "Prop 215" on your tax info, put "Tomatoes or Baked goods"

 

[Hydrosun]

Aloha JT:

I'm in CA and got my first 1099 Misc. to file with my taxes... I've heard in order to claim deductions, you have to file a Schedule C, and that DOUBLES your chances of being audited!

Plus, there are other reasons I'd rather not raise any red flags... recipient of federal benefits, etc.

I'd really appreciate any info you can share about this, or point me in the right direction... thanks!

You should have NEVER filled out the W9 and they wouldn't know what your name and SSN was so you couldn't get 1099ed.

Now that you have been 1099ed the IRS knows WHO 1099ed you and WHAT their business is, the IRS will know this information if you file a return or not.

So you have been 1099ed by a cannabis shop. When you input the information into TurboTax or some other program, it will create the schedule C for you.

The choice is up to you. You may choose to enter expenses associated with generating that 1099 or not, but the IRS already knows about the money you received from a cannabis shop.

 

[Blueshark]

Taxing & Growing for a living...

Taxing & Growing for a living...

Oh I understand reinvestment, I also understand the need to diversify your earning potential and the need to pull money out of a short term federally illegal endeavor into a long term legally sound position. We all know that growing weed for profit is only going to last as long as it is a black/grey market unless you want to buy a combine and move to Nebraska. I would love to grow weed for a living but doing it over acres and acres is probably not my cup of tea.

Even if it becomes 'mainstream/legal' there will be markets for quality.
Production of large quantities cuts the quality because they cannot pay attention to detail like we can. Just like many 'micro breweries' produce smaller quantity yet higher quality beverages, growers will still realize higher prices. Rightfully so.

As for taxes, yeh, pay them... List it as self-employed/agricultural, whatever... Just stay on the good side of the 'revenuers' ... They will hound you endlessly <---IRS. <---You