# All You Care Givers Out There, Do You Pay Your Taxes?



## Stoner Smurf (Oct 10, 2010)

Do you guys pay taxes on the money you make from being a care giver? I am especially curious about care givers who give care for a living and thats all they do. How do you file your taxes? Do you just claim your income as care-giver? Can you do that and just file your taxes as you would if you ran a normal business? I wouldn't feel right if I didn't pay taxes on it at all. Of course I probably need to talk to a good and trustworthy CPA, but I would like to hear some of RIUs tax solutions.


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## Stoner Smurf (Oct 10, 2010)

Oooops accidental post.


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## skiweeds (Oct 10, 2010)

nope. im a legit caregiver and i charge $0. growing dope is and should be a hobby, not a profession. everyone is too greedy and shady with it. too many bad people are part of the community and ruin it for other good people like me and probably even yourself. i make way more money working an honest job. 95% of supposed CAREgivers can go fuck themselves. at least where i live and from who i have met.


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## CrazyBudz (Oct 10, 2010)

fuck no they dont.....most are in it just for the $$ why would they volunterly pay taxes on it!!


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## Stoner Smurf (Oct 11, 2010)

skiweeds said:


> nope. im a legit caregiver and i charge $0. growing dope is and should be a hobby, not a profession. everyone is too greedy and shady with it. too many bad people are part of the community and ruin it for other good people like me and probably even yourself. i make way more money working an honest job. 95% of supposed CAREgivers can go fuck themselves. at least where i live and from who i have met.


I hope this is a joke, and a bad one at that. Last week I logged just over 50 hours of work in my grow room. I usually only log 35 hrs a week or so, but last week was busy. But that's the hours of a full time job. So according to you I should be working this full time job for fun as a hobby? Uhhhh no. Not to mention the $300+ on nutes each month, and my monthly $500 electric bill. But that money should just come out of my pocket cause being elbow deep in bat shit is so much fun it's worth it.

CrazyBudz, they'd pay taxes on it because they'd want to avoid prison. Even if people are not paying their taxes I hope they've at least talked to a good CPA about not paying their taxes the proper way. You know what they say the difference between Tax Evasion and Tax Avoidance is right? About 20 years.

Also just cause people grow bud doesn't mean we are all necessarily bad citizens. As a citizen of this country we have a civic duty to pay our taxes, regardless if the money is spent poorly. I for one won't skip out on my taxes regardless of the source of income. If everyone did that we'd have no roads, hospitals, schools, etc.


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## puffntuff (Oct 11, 2010)

hey bro i pay taxes and claim im a professional gmabler. yeah my taxes are prolly higher but there paid and the irs can blow me if they dont like it.


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## rzza (Oct 11, 2010)

well said smurf. i plan to start in january, ill keep all reciepts and log all hours. come the following tax season i will file.


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## rzza (Oct 11, 2010)

puff do you play poker? cuz we have to do that and really only a poker player would even know to do that IMO.


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## rzza (Oct 11, 2010)

funny everyone in this thread is from michigan and its not even in our subforum


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## puffntuff (Oct 11, 2010)

Yeah I play but mostly black jack and baccarat. Three of my friends are poker pros so they turned me on to paying taxes that way.


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## skiweeds (Oct 12, 2010)

Stoner Smurf said:


> I hope this is a joke, and a bad one at that. Last week I logged just over 50 hours of work in my grow room. I usually only log 35 hrs a week or so, but last week was busy. But that's the hours of a full time job. So according to you I should be working this full time job for fun as a hobby? Uhhhh no. Not to mention the $300+ on nutes each month, and my monthly $500 electric bill. But that money should just come out of my pocket cause being elbow deep in bat shit is so much fun it's worth it.
> 
> CrazyBudz, they'd pay taxes on it because they'd want to avoid prison. Even if people are not paying their taxes I hope they've at least talked to a good CPA about not paying their taxes the proper way. You know what they say the difference between Tax Evasion and Tax Avoidance is right? About 20 years.
> 
> Also just cause people grow bud doesn't mean we are all necessarily bad citizens. As a citizen of this country we have a civic duty to pay our taxes, regardless if the money is spent poorly. I for one won't skip out on my taxes regardless of the source of income. If everyone did that we'd have no roads, hospitals, schools, etc.


your also probably be watched by the dea if you have an operation that big. make sure you follow the rules or they will fuck you. even if i did have a huge operation, i guarantee i'd still be making more in my job. too much on the line for me to risk if i ran a big operation. it is still federally illegal. and dont trust obama being in office to keep you safe. in fact dont trust the government at all.


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## rowlman (Oct 13, 2010)

I've been reading these caregiver/patient posts the last couple days and have a question about the taxes. 
I've been growing for me and 1 other person for a year now and getting ready to bring in 1 more. I don't want to get into the free meds or how much $$ BS( like I said...I've been following these threads..lol )...but if any money that comes in goes back into the grow ( nutes,equip, elec bill, etc. ) and I'm not profiting $$.
The only profit ,in my case right now, would be free meds...so theres no taxes to be claimed then?
I plan to look into all this with my tax guy...just thought I'd ask here .


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## rowlman (Oct 13, 2010)

I just read back my post...I can't even understand it.
What I was trying to ask was...if there is no profit coming in from my patient at this time, do I need to even tell my tax guy that I'm a caregiver??


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## puffntuff (Oct 13, 2010)

i wouldnt. its just like any other bus if your in the red how can you pay??? taxes are for folks that are making a living by it. you are not so fuck it. you would claim a win on a scratchoff would you its the same i feel.


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## rowlman (Oct 13, 2010)

I know...I don't even know why I asked a stupid question like that.
I've had to pay my own taxes in the past on different jobs...even then I didn't unless I recieved 10-99 form the contractor..lol..jk, never anything big anyways.
If things change in the future and I'm actually making an income off this, then I would do everything on the books.
Too much to lose here...but for now,other than the free meds, I'm still in the neg. at the end of the month...lol


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## jesus of Cannabis (Oct 13, 2010)

With the money I get form my patients for being their caregiver it goes back into lights, nutes and other fun stuff to make my grow more efficient and I pay taxes on everything I buy, except if its from the internet. So no I dont file a 1099 just for being a caregiver, the government has enough trouble wasting money without needing mine.


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## TreeOfLiberty (Oct 13, 2010)

I used to hear old timers when I was a kid growing up that there was no actual written law that said one must pay taxes on their income. I thought they were crazy, that is until I got around 30 yrs old and started digging into income tax protest websites and digging deep. The first guy that really caught my attention was a man named Joe Banister that worked for the IRS and was fired when he started pressing his supervisors to show him where it was a written law that a U.S. citizen is LAWFULLY required to pay income tax.

Notice I'm saying WRITTEN law, and there is NO WRITTEN law that clearly states one HAS TO PAY. All these people who get prison time and their assets taken by the courts are being RAILROADED. The income tax DOES NOT go to the running of the U.S. GOVT. , it goes solely to paying the INTEREST on the Federal Reserve. Most people just assume that it is a law because they know someone or know of someone that has been audited or jailed over income taxes and their parents paid and grandparents paid so they just assume that it's the right thing to do by paying income tax. It is a corrupt set up against the people on paying income taxes, we never had an income tax until 1913 and America ran just fine over a hundred years before then.

The authority of the federal government to collect its income tax depends upon the 16th Amendment to the U.S. Constitution, the federal income tax amendment, which was allegedly ratified in 1913.The 16th Amendment was not ratified by the required 3/4 of the states, but nevertheless Secretary of State Philander Knox fraudulently announced ratification.

You won't see the facts in mainstream media about the truth behind the income tax. A good video with credible and valid sources, interviews with former IRS agents and attorneys is America Freedom to Fascism >

http://video.google.com/videoplay?docid=-1656880303867390173#

Now as far as paying income taxes as a grower...why the hell should you ? Even if you refuse to believe the truth and believe it is right to pay taxes or if you fear going to jail for not paying them, why would you want to pay an income tax on providing Cannabis to patients when the Federal Govt constantly locks up caregivers and dispensary owners for selling Cannabis and then refuses to allow the people they railroad to use the term "medical" in any way in Federal court. They never let the jury hear the term MEDICAL marijuana. 

I don't pay and I won't pay and if anything paying an income tax on something that the FED's deem illegal anyway is opening more doors for them to bust you.


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## stonedmetalhead1 (Oct 17, 2010)

Yes but people still go to jail so you might as well pay your taxes.


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## bigv1976 (Oct 17, 2010)

MMJ is supposed to be non-profit and you only pay taxes on profit so I am guessing not too many mj taxes get paid.


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## Stoner Smurf (Oct 17, 2010)

Who says MMJ is suppose to be non-profit. I know in some states it is (i.e. New Mexico), but I know in my state (and I am sure we're not the only one) it says nothing about non-profit/for profit. Not paying taxes is a good way to end up in prison. My logic is as follows, Obama sent a memo to the DEA telling them to not waste resources on people complying with state law. Although that doesn't eliminate the possibility of the DEA kicking in the door on my legal grow, I am sure it reduces it, and at the very least it's a nice placebo. But I know for a fact that Obama sent no such memo to the IRS. If you're a full time care giver making a full-time income and not claiming it, I can almost guarantee you will get a knock on your door from the IRS. I've been audited before, it sucked major donkey dick. All my shit was in check and it still sucked.


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## Seaghost (Nov 6, 2010)

Per my lawyer here in SD this is how to be legal, which I am:

1 Incorporate and set yourself a salary, this must be a dollar amount, not a percentage.
2 Hire an accountant, make them your treasurer or CFO.
3 Be sure that you are in compliance with local ordinances and regulations, such as being too close to schools and the such. This includes having the proper grow permits for the size of your grow, here in SD you just need the cultivators license from your doctor, about $200 and it allows 99 total plants, this is root structures so clones count.
4 Pay all taxes, accountant will merely withhold from your check the applicable state and federal taxes and each quarter they will be paid.

That is all there is too it, the incorporation costs about 800 to 1k but be sure the lawyer knows your local MMJ laws. Its also a good idea to have an accountant that has similar clients so they will know how to keep it legal. In some places you have to open your grow up to local law enforcement inspection, but if your legal, like I am, its no problem.

They just come in and verify your plants then leave, the frequency depends really on your attitude. Be friendly and helpful, hell I've had them ask about different ways of growing, what strains are best for MMJ, all sorts of questions. If your friendly so will they be, they are just doing their job.

Peace out


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## Shayden (Nov 6, 2010)

In Canada, Care Givers can deduct the price of there lights, electric bills, and all the supplies they use to grow the weed from their taxes. + They alsoo sell the bud for profit too. Awesome system lol.


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## K062706 (Nov 6, 2010)

Thanks for this!!!! This is what I want to do with my life! This is my calling  hopefully in 2 years or so I will be in business for myself. +Rep


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## Seaghost (Nov 6, 2010)

K062706 said:


> Thanks for this!!!! This is what I want to do with my life! This is my calling  hopefully in 2 years or so I will be in business for myself. +Rep


Outstanding, I myself quit my career in IT (20+ years) and am now fully committed to this industry. The main thing that I have learned is being legal and above board, if your like that in Cali and don't sell across state lines your golden. The DEA won't go after you if your paying taxes since this is revenue for the Fed, as long as your legal by the state. If however they can get you on Federal charges, then all bets are off. A prime example of this is going above the 99 plant limit, that is an automatic 5 years in federal prison. 99 plants and less are prosecuted at the state level so they really have no interest in messing with those operation as long as they are legal.

In my opinion all growers should be legal so that we can bring this out of the back alleys and onto main street, which some of us are accomplishing. The more of us that do that the better it will be in the long run, eventually the Fed will want a slice of the pie. That will just mean more taxes and regulations but that's the price of doing business with the feds.

As always peace out


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## jas6118 (Nov 8, 2010)

> Notice I'm saying WRITTEN law, and there is NO WRITTEN law that clearly states one HAS TO PAY


 *FAIL*

Wrong, the 16th amendment - Congress passed it, allows them to levy tax's.


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## jeffbelize (Nov 11, 2010)

Why would you pay taxes in the USA on some thing the goverment fails to even recognize as legal?..They gets theres on the other end...JAIL..PRISON..LAWYERS..AND THAT WHOLE SYSTEM!


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## guy incognito (Nov 15, 2010)

TreeOfLiberty said:


> I used to hear old timers when I was a kid growing up that there was no actual written law that said one must pay taxes on their income. I thought they were crazy, that is until I got around 30 yrs old and started digging into income tax protest websites and digging deep. The first guy that really caught my attention was a man named Joe Banister that worked for the IRS and was fired when he started pressing his supervisors to show him where it was a written law that a U.S. citizen is LAWFULLY required to pay income tax.
> 
> Notice I'm saying WRITTEN law, and there is NO WRITTEN law that clearly states one HAS TO PAY. All these people who get prison time and their assets taken by the courts are being RAILROADED. The income tax DOES NOT go to the running of the U.S. GOVT. , it goes solely to paying the INTEREST on the Federal Reserve. Most people just assume that it is a law because they know someone or know of someone that has been audited or jailed over income taxes and their parents paid and grandparents paid so they just assume that it's the right thing to do by paying income tax. It is a corrupt set up against the people on paying income taxes, we never had an income tax until 1913 and America ran just fine over a hundred years before then.
> 
> ...


lol

http://docs.law.gwu.edu/facweb/jsiegel/Personal/taxes/JustNoLaw.htm

but he does have a good point about automatically incriminating yourself of a federal crime by paying tax on it.


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## Seaghost (Nov 16, 2010)

Okay after reading some of these posts I feel that this has to be set straight, keeping in mind this is CURRENT policy per the Fed.

1 As long as you run your business within state guidelines concerning MMJ then the Fed probably will not mess with you. This means especially not going crazy growing all that you can, DO NOT break the 99 plant Federal limit for root structures. For our local delivery business we buy from other growers to make up for our shortages.

2 Ca guidelines states that it must be operated as a non-profit, that is the key.

3 You the owner are allowed to make a living wage from your product even in a non-profit, keep in mind what I just said, a LIVING wage. Now this can be open to interpretation but the gist is if your working 12 hours a day 7 days a week on your business then set a fair salary for that rate for the area that you live in, an accountant can be of great help here and is almost required.

4 As a non-profit if you make excess monies then you must dispose of these funds via legal means, this means DONATE the monies left over to various charities, I prefer local ones. Keep in mind this is monies left over after all operating expenses of the corporation for the year including new equipment purchases for the following year.

5 The corporation will take care of all taxes, your wages will have withholding's just as if you were working a normal job, you can even have the corporation pay unemployment taxes for you if you would like. Also your SS payments are continuing so your are earning retirement.

6 Now when you file your income taxes you are showing your wage coming from a non-profit as an officer of the board. The corporation helps keep you clean in the eyes of the feds for the most part, very low profile this way.

7 The last thing is never ever sell to anyone that is not a MMJ card holder or sell across state lines, that will get you busted quick. Always verify paperwork, that's why I love Ca with the system that's set up, very easy and anyone can verify via a computer.

If you follow these rules you will be okay as far as the state is concerned and once you get a circle of followers for your product you don't even need a store front or anything else. You will sell all that you can grow 

When reading about dispensaries getting busted I usually notice one of two things, either very large amounts of money or 100+ plants, either of which is red flags for law enforcement. 100 plants is important because that is automatic Federal court with no MMJ defense, under that it reverts to the state to prosecute. 

Edit: Almost forgot but another thing with doing it this way is that when someone asks you what you do for a living you can say that your an officer on the board of a local non profit helping out cancer patients. No one will real really try to get into specifics and it sounds like your doing the world a favor 

Let the detractors roll in, peace out


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