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Licensed caregivers need your help, federal taxes?

ink the world

ink the world

Well-Known Member
Im in the process of getting my caregivers license in my state. The state law says that caregivers must charge state tax on all medication.


Im happy to be able to "come out" from the underground growing scene and be a legitimate business operation. My concern is how do I deal with this on a Federal level, specifically on tax returns.

With having to declare that income and pay the taxes on a state level, how do I do declare that income on my federal forms without raising red flags. I want to pay my taxes and all that, but I dont want the DEA to come knocking.

How do you guys deal with this?
 
Saerimmner

Saerimmner

Well-Known Member
im not from the USA but ill hazard a guess at..........tax is probably only owed on SALES of MMJ as i understand it most caregivers "donate" the MJ in return for "legitimate expenses" to avoid the tax trap
 
ink the world

ink the world

Well-Known Member
Saerimmner said:
im not from the USA but ill hazard a guess at..........tax is probably only owed on SALES of MMJ as i understand it most caregivers "donate" the MJ in return for "legitimate expenses" to avoid the tax trap
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My wife and I were thinking the same, but with the volume we hope to achieve thats too much to completely hide. We want this to become the family business, I own a business in a completely different field right now. If we can work the tax thing out, I'll be selling my other business to finance this one and devote all my time to it. We plan on both being licensed caregivers which would bring us to a plant limit of 60 flowering plants and a maximum monthly "sales" of 50 oz. to patients. We are also allowed to supply other caregivers in the state.

Thats a lot of $ in and out (supplies), too much to hide. Additionally we want this to be a legitimate business for us. I dont mind paying the state taxes, I dont mind paying federal income taxes on it either. I just dont know how to show it and not attract federal attention.





mygirls said:
move to a state that you don't have to pay taxes..
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Not an option, ive lived all over the country and love it here. Wouldnt want to raise my kids anywhere else.
 
Saerimmner

Saerimmner

Well-Known Member
ink the world said:
My wife and I were thinking the same, but with the volume we hope to achieve thats too much to completely hide. We want this to become the family business, I own a business in a completely different field right now. If we can work the tax thing out, I'll be selling my other business to finance this one and devote all my time to it. We plan on both being licensed caregivers which would bring us to a plant limit of 60 flowering plants and a maximum monthly "sales" of 50 oz. to patients. We are also allowed to supply other caregivers in the state.

Thats a lot of $ in and out (supplies), too much to hide. Additionally we want this to be a legitimate business for us. I dont mind paying the state taxes, I dont mind paying federal income taxes on it either. I just dont know how to show it and not attract federal attention.






Not an option, ive lived all over the country and love it here. Wouldnt want to raise my kids anywhere else.
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well best bet on this has just got to be spending a bit of money and doing it properly by consulting a tax consultant/IRS/business lawyer etc, worth doing it right if it is going to be your livelyhood, also you said family business, dont wanna run the risk of a full on raid if theres kids/dogs about if you can do it right to start with 100% legal for a few quid extra
 
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