understanding the law as a grower...

Black lights will show it right up, most folks don't even do that. Its a pretty basic yes its there or no its not.

So whats up people? what are we whining about today?

Reading the new laws yesterday cemented my decision to move up. It says you can account for labor and dispensaries can buy now.. Ill still be hooking up my patients super cheap. But will be cool to me, to legally sell extras. I just want to make a living cause i love growing. Not tying to get rich. Or make patients pay much.

Anyone that sales to a disspencery is on paper and is just as illegal as the disspencery when it comes to sale. Don't sale or you will go down like all the so called legal disspencery.

The law went into effect march, 1, 2014. Half the disp. Moratoriums end in may 2015. They go down b/c its banned where ever they were i suppose. Its going rec soon too also. Its gonna be awesome for the growers.. Hopefully price goes back up., as far as rec. bud.

I for one don't want it legal. they were in commercial zoned areas and still shut down.. they all will be shut down before IF and when it legalizes

I use to not want it legal.. I feel ya. But its better for the people. And better for me really.
The dispensaries are about to open up now b/c licenses are able to obtain legally. But gota wait till may to be legal in most places is what i read. They needed time to set up regulations so its not crazy with 100 dispensaries in medford. We'll see. Hope it works. It will create jobs in the field too that can pay taxes.

Why dont you want it legal?

because the bastards charge so much for meds, its bullshit. if they were actually there for the patients and show compassion instead of for the old mighty $.. 240 an oz fuck I get it cheaper off the streets when I can find it. way cheaper

Right. Shit i cant argue with that. Im hoping i can get 2k a lb for organic indoor from a dispensary up there. I'll be hooking my patients up with freebies, but not always.

The law states that you cannot profit from the weed when dealing with your patients, but does state that the grower can charge for the patients' share of the cost of supplies and utilities*. I added a link below for anyone wanting to throw the bs flag.

If I had 3 patients I was growing for (and I would be 4), I would split all of the bills up 3 ways, each pays 33% of the cost to grow it. I would pay 0% of the cost to grow it because I am growing it.

As for the OP's question.
1There is no profit, so there is nothing to claim on taxes. Plus, when it comes to Fed taxes. There is no such thing as Medical Marijuana as far as the feds are concerned, so it would just be State tax, and no profit pretty much means you don't have to claim it. It's not like you are giving out receipts for them to claim on their taxes, so it's not an issue.

2. New equipment would fall under 'supplies associated with the production of marijuana'. So, yes you can charge for that.

*http://public.health.oregon.gov/DiseasesConditions/ChronicDisease/MedicalMarijuanaProgram/Documents/ORS.pdf
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Big Perm said:

<snip>
If I had 3 patients I was growing for (and I would be 4), I would split all of the bills up 3 ways, each pays 33% of the cost to grow it. I would pay 0% of the cost to grow it because I am growing it.
<snip>
As for the OP's question.
1There is no profit, so there is nothing to claim on taxes. Plus, when it comes to Fed taxes. There is no such thing as Medical Marijuana as far as the feds are concerned, so it would just be State tax, and no profit pretty much means you don't have to claim it. It's not like you are giving out receipts for them to claim on their taxes, so it's not an issue.

Click to expand...

Hey there your permness, to be *extremely* nit picky, you'd actually want to split the bill *4* ways as while you are in fact growing it, you're growing it FOR you as well. If you didn't have any other patients you would be paying 100% of the bills. (Else that whatever a month would technically be "profit" in the eyes of most judges, a good portion could also see any proportion of the crop you keep from the patients plants as "profit" as well, but it would be extremely murky waters to try to value it...)

And it really should be noted that while there is no such thing as medical marijuana to the feds, they still get their cut from "profits" (when such exist).from businesses in CO and WA (there's also no such thing as legal marijuana to the fed.) However, there is at least one lawsuit making its way through the courts as Rob Corry got a bit of press a few months back challenging the IRS' attempts to collect taxes on marijuana. He says forcing Colorado’s recreational marijuana businesses (and consumers) to pay violates the United States Constitution (self incrimination comes to mind...) (one reference: http://www.hightimes.com/read/paying-marijuana-tax-confession-breaking-federal-law ). Hell, even al capone was supposed to have paid taxes on his ill gotten gains (note I am NOT comparing legal businesses to organized crime, it's just really late and he's the one example I think everyone knows who came to mind)

It's tough being on the frontier... but it still beats where we were 20 yrs ago, or you know, in many states in this country...

And it really should be noted that while there is no such thing as medical marijuana to the feds, they still get their cut from "profits" (when such exist).from businesses in CO and WA (there's also no such thing as legal marijuana to the fed.) However, there is at least one lawsuit making its way through the courts as Rob Corry got a bit of press a few months back challenging the IRS' attempts to collect taxes on marijuana. He says forcing Colorado’s recreational marijuana businesses (and consumers) to pay violates the United States Constitution (self incrimination comes to mind...) (one reference: http://www.hightimes.com/read/paying-marijuana-tax-confession-breaking-federal-law ). Hell, even al capone was supposed to have paid taxes on his ill gotten gains (note I am NOT comparing legal businesses to organized crime, it's just really late and he's the one example I think everyone knows who came to mind)

It's tough being on the frontier... but it still beats where we were 20 yrs ago, or you know, in many states in this country...



you made a good point. how is it going to be legal for recreational use by the feds if medical marijuana is not legal by the feds. mark my words, if it ever passes the feds will be on every pot plant being grown in the great state of Oregon

mygirls said:

you made a good point. how is it going to be legal for recreational use by the feds if medical marijuana is not legal by the feds. mark my words, if it ever passes the feds will be on every pot plant being grown in the great state of Oregon

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Eh, I'm fairly sure they will treat it like beer currently is. We can legally make 100 gallons of the stuff at a time (*note I'm not in an exact frame of mind at the moment) tax free in so long as we don't transport it across state lines, barter with it , or sell it. The same will be true for pot plants, though with a limit of 4 plants per adult (plus 6 for us medical people) I have my suspicions that those limits would be raised over time... but I'm in an optimistic sort of mode at the moment (I even think now that the state dems have tossed their support behind it it might actually pass this time around!) To be honest, 4 plants per adult is ok by me as long as it's just mature female plants as in an ideal world I want to grow 8 plants at a time in my indoor narnia (2 samples of 4 types swapping types every couple of grows for greater variety, possibly keeping a stunted clone of the really good ones that haven't been bred.)

Now if you're growing to sell and not just get your own rocks off, then the feds will want their cut. But the clones you buy from the nursery already are taxed (I want to say $5 per plant, but again,. recolection is hazy of that OPB interview...) ditto seeds etc (no clue what their tax rate will be)

I'm all for legalization. I want no more prison time for A PLANT.

Yes, the rules, taxes, and nitpickiness of the legalization process drive me crazy too, and aren't fair to the little guy......but if it meant someone's life was saved from prison because it was legal, than I'm for it.

I'd also like all people serving time for a mj conviction to the released, if it gets legalized. I don't think that's on the political horizon. I'm not *that* naive.

I don't think any of us want prison time for a plant! Which brings me back to one of the original questions that started this thread...the issue of taxes.

I don't profit from my patients, but I've contemplated selling some of my excess MMJ to dispensaries. Those that I've talked to say they'll issue me a 1099 at the end of the tax year for my profits.

I'm certainly willing to pay taxes, but it seems like a dumb move on my part to expose myself to the feds as part of the industry. What are other people's experiences regarding taxation of their MMJ sales? Is it normal for a dispensary to issue a 1099? It seems to me the best way to protect myself from the law would be to not report those earnings. Then again, if a dispensary issues you a 1099, your earnings are still being reported regardless of whether or not you include them on your individual tax return. It's a damned if you do, damned if you don't type of situation.

IceG said:

I don't profit from my patients, but I've contemplated selling some of my excess MMJ to dispensaries. Those that I've talked to say they'll issue me a 1099 at the end of the tax year for my profits.

I'm certainly willing to pay taxes, but it seems like a dumb move on my part to expose myself to the feds as part of the industry. What are other people's experiences regarding taxation of their MMJ sales? Is it normal for a dispensary to issue a 1099? It seems to me the best way to protect myself from the law would be to not report those earnings. Then again, if a dispensary issues you a 1099, your earnings are still being reported regardless of whether or not you include them on your individual tax return. It's a damned if you do, damned if you don't type of situation.

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Sorry thought I answered this before meandering off topic, you *must* pay taxes on your income in the eyes of the government (even if your income was gained from illegal sources). Failure to do so is a fineable (and in some extreme cases jailable) offense. If you're a self employed person who aquires 1099s your income is reported to the IRS each year (and if said income is above $400 you must file self employment taxes). Your job as tax payer (or your accountant's) would be to apply as many deductions as possible to said income. Keep receipts, and talk to an actual accountant, not us randos on the internet for advice

To answer your other question: As they become less quasi grey market organizations, more and more disps will be giving 1099s since they are licensed businesses they're required to do so (even as non licensed businesses, they're supposed to.) You are (reasonably) safe from prosecution (at least under obama's current directions) for filing taxes for a state legal business. And I suppose the fact that the bunny ranch in nevada has been paying taxes for many decades despite breaking federal law by being a house of prostitution, your odds are good you won't have the men with guns at your door any time soon.

Oh, other bit of the law that people may have forgotten, of our 24 ounces of marijuana that we're allowed the state of oregon makes no differential between hash and bud. A fact that I'm pondering in my mind while I trim an early branch and remember how much trimming sucks (and this is the smallest branch of an 8 foot tree.... fck me, first world problems indeed....)

Yeah, I mean it sounds like a dumb question...durrr, pay your taxes. But when the act of paying taxes provides irrefutable evidence that you're committing a felony, it makes you wonder whether it's really a smart move.

Good to know that it's fairly commonplace for dispensaries to issue 1099's.

IceG said:

Yeah, I mean it sounds like a dumb question...durrr, pay your taxes. But when the act of paying taxes provides irrefutable evidence that you're committing a felony, it makes you wonder whether it's really a smart move.

Good to know that it's fairly commonplace for dispensaries to issue 1099's.

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OH! Gotcha, this might make you feel better: While you can list your occupation on your tax forms as a consultant, there's no need to explain what you did to earn the money from the companies that issue 1099s for you. On your forms you just state you received $X from ACME whatsit company $Y from blooming garden health care, etc.

So if Al Capone had just listed his occupation as "security" they would have left him alone? I'm not saying that the Feds will come after you for selling, I'm just saying that they can.........and DO.