Hello, everyone. I'm new here - first post.
I live in Colorado and am growing my own plants for personal use. I plan on selling the overage to dispensaries for some additional income. I have my BS in Business and Accounting and tax training. I hope that my overage sales and tax work will provide me enough income to be self-employed, and therefore, I quit my job.
I am working with a few dispensaries that are getting started and many have expressed ignorance with tax issues.
I need information on filing both sales and income taxes. I would like to know about state tax requirements and how income is reported. I would like to know how federal taxes are paid. This is a little difficult since marijuana use and sales are still a federal offense. I don't believe someone who grows for personal use and sells overages will need to do more than claim hobby income. But individuals who may be growing for more than personal use and making a business of it will need to do more.
However, in my research, I have found that federal entities are prosecuting for other reasons even if growers are in a legal state. Several people under arrest for federal tax evasion. It seems smart to me to cover ass, so would like to buiild this business niche with some help.
Thanks a lot. Have been reading posts for quite a while and have healthy plants to show for it!
I live in Colorado and am growing my own plants for personal use. I plan on selling the overage to dispensaries for some additional income. I have my BS in Business and Accounting and tax training. I hope that my overage sales and tax work will provide me enough income to be self-employed, and therefore, I quit my job.
I am working with a few dispensaries that are getting started and many have expressed ignorance with tax issues.
I need information on filing both sales and income taxes. I would like to know about state tax requirements and how income is reported. I would like to know how federal taxes are paid. This is a little difficult since marijuana use and sales are still a federal offense. I don't believe someone who grows for personal use and sells overages will need to do more than claim hobby income. But individuals who may be growing for more than personal use and making a business of it will need to do more.
However, in my research, I have found that federal entities are prosecuting for other reasons even if growers are in a legal state. Several people under arrest for federal tax evasion. It seems smart to me to cover ass, so would like to buiild this business niche with some help.
Thanks a lot. Have been reading posts for quite a while and have healthy plants to show for it!