• Here is a link to the full explanation: https://rollitup.org/t/welcome-back-did-you-try-turning-it-off-and-on-again.1104810/

Whats happening in cali

Milovan

Milovan

Well-Known Member
Dan Kone said:
It's quite common for clubs to open right back up after being raided depending on the charges.
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Well then, I retract the "Brain Dead" part but still
to risky to open a club. Whether it is to just help
patients or make money or both it's still not worth
it. To possibly lose everything, go to prison, have a
criminal record, get robbed or shot/stabbed to death,
being paranoid for all those reasons aforementioned and more just is
not worth the risk. Ruin your life(or lose it), get out of prison to reap
saved/hidden profits, get into the same biz again, get busted again making your
life worse then before it's just a vicious circle that I want no part of.
And no I do not visit dispensaries.
 
Dan Kone

Dan Kone

Well-Known Member
Milovan said:
Well then, I retract the "Brain Dead" part but still
to risky to open a club.
Click to expand...
Sure, it can be. It really depends on the circumstances. Usually it's done on the advice of their lawyer.

Whether it is to just help
patients or make money or both it's still not worth
it. To possibly lose everything, go to prison, have a
criminal record, get robbed or shot/stabbed to death,
being paranoid for all those reasons aforementioned and more just is
not worth the risk. Ruin your life(or lose it), get out of prison to reap
saved/hidden profits, get into the same biz again, get busted again making your
life worse then before it's just a vicious circle that I want no part of.
Click to expand...
That all depends on the level of risk involved. If there is a 0.01% chance you'll get charged with a crime and an 80% you'll make a million dollars, I'd say the risk might be worth the reward.

If there is a 50% chance you'll go to jail or even a 20% chance, that's probably not worth the risk under most circumstances.
 
RawBudzski

RawBudzski

Well-Known Member
Some dispenses added a 8% tax on bud here in socal.. Not all the Clubs will close. Haters'Gon Hate & Hope.. But if you do not live in cali you have no clue. <3

We will have the best bud flowing regardless how many clinics are relocated or closed down. Not like they are going to start kicking in doors of the patiences once the clubs go. ^_^ thoes w/ bud..will have bud.

& if your local clinic is closing soon, all that means is you should make sure to buy some of their best clones before hand.?.
 
collective gardener

collective gardener

Well-Known Member
RawBudzski said:
Some dispenses added a 8% tax on bud here in socal.. Not all the Clubs will close. Haters'Gon Hate & Hope.. But if you do not live in cali you have no clue. <3

We will have the best bud flowing regardless how many clinics are relocated or closed down. Not like they are going to start kicking in doors of the patiences once the clubs go. ^_^ thoes w/ bud..will have bud.

& if your local clinic is closing soon, all that means is you should make sure to buy some of their best clones before hand.?.
Click to expand...

I agree. We were growing and distributing quite nicely prior to 215. The infastructure of our industry is firmly established here in California. Nobody is going to go without.
 
anotherdaymusic

anotherdaymusic

Well-Known Member
Dude theyve been getting raided pretty much since they started opening them up, feds are going after big business. its still illegal, its super fucked up that they get raided... state law should protect them, but nope, feds have longer dicks, and they love fucking us...
 
T

Toss&Turn

Well-Known Member
wow, so Toss - do you see any way that dispensaries can operate at all under the new IRS rules?
glad to have your input on the matter!

Sorry about the absence...I was reading other threads when I received a notification from this one.

Perhaps I should clarify my stance. Once an accountant passes the CPA exam, he/she must take an ethics refresher course. While in college, accounting majors must also take ethics courses. So believing in honesty and fair play, let me state this: In 1896, 9 men decided that segregation was the law of the land in the US. 58 years later, 9 other men, (looking at the same laws), decided that integration was the law of the land. We say that society dictated the standards. I say that those nine men did and society had to follow. What I'm advocating is the process of choosing your legislators (ie, representatives, senators, govenors, & presidents), to bring about a change in the way marijuana is viewed (their appointing of judges). Hey, they said that the world would end when a Polish man became the Pope or a black man became the American President. Both scenarios have passed. It is time to make marijuana legal in the US. The rest of the world will follow. As for dispensaries, they can operate under the rules. They need to become non-profit in nature. A true non-profit has so many things going for itself, (like purchasing its items without paying sales taxes, not paying federal taxes, getting donations from contributors who in turn can deduct their donations from their income tax returns, etc, etc). The non-profit must seek an attorney that specializes in non-profits. Though I long for the days when I was doing that work, now my body demands my attention. Believe me when I say that we should all pay our taxes willingly. This is how a non-profit (the US government) operates. But if you disagree with me, then believe your higher powers. Jesus Christ told everyone to pay their taxes. He understood that even though some politicians were crooks, the good politicians also needed those same tax dollars to do good deeds. I'm quite sure that Buddha, Mohammad, an others also advocated the paying of taxes.

With a good product, at night I do not ...
Toss & Turn
​
 
strangerdude562

strangerdude562

Well-Known Member
It's all about money, Long Beach City charges $10,000 for an application to open a dispensary and it's still thrown into a lottery so there is no guarantee of approval and no refunds.
 
Dan Kone

Dan Kone

Well-Known Member
Toss&Turn said:
As for dispensaries, they can operate under the rules. They need to become non-profit in nature. A true non-profit has so many things going for itself, (like purchasing its items without paying sales taxes, not paying federal taxes, getting donations from contributors who in turn can deduct their donations from their income tax returns, etc, etc).
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Most of that is illegal under the current rules.

Cannabis collectives are being asked to play by a set of rules that no other corporation in America plays by, even other non-profits.

What non-profit company in America is asked to pay full taxes on their gross without any deductions even for payroll and rent?

This is a system designed to force dispensaries to disobey the rules so they are easier to bust.
 
L

lamabile85

Member
I've always thought about purchasing an existing dispensary. I don't know if that would make the process any easier, but I thought I would give that a shot first before opening up a new one.
 
T

Toss&Turn

Well-Known Member
Dan Kone said:
Most of that is illegal under the current rules.

Cannabis collectives are being asked to play by a set of rules that no other corporation in America plays by, even other non-profits.

What non-profit company in America is asked to pay full taxes on their gross without any deductions even for payroll and rent?

This is a system designed to force dispensaries to disobey the rules so they are easier to bust.
Click to expand...
I'm not familiar with the rules governing MMJ dispensaries. However, non-profits are authorized to conduct certain business operations. Any monetary gains on anything that is not related to their core business is taxable. For instance, the SF Main Library has many books, magazines. That is their core business to loan out books. People lose the books. The library is supposed to charge the price of the book or one can purchase the book and give it to the library. No taxes or scrutinization. The library also has a cafe in it. All sales in the cafe are fully taxable because the library is not in the restaruant business. All items that you purchase that has SF Library on it, (sweatshirts, mugs, etc.), are fully taxable. Under the rules of non-profits that were in place when I was in the field, the MMJ dispensary would be taxed on anything that is not medicinal related that they sold to their patients. Everything else, (ie. weed, edibles, bongs, papers, lighters, incense, etc.), is monies received and expended in the operations of the business. Of course, they are only supposed to charge what is needed to run the business. I hear that they charge outrageously, but I wouldn't know unless I saw the books. If all dispensaries charge the same amount, either it really costs the amount that they are charging or there is a nationwide conspiracy to inflate the prices of medical marijuana.

T&T
 
T

Toss&Turn

Well-Known Member
Dan Kone said:
Most of that is illegal under the current rules.

Cannabis collectives are being asked to play by a set of rules that no other corporation in America plays by, even other non-profits.

What non-profit company in America is asked to pay full taxes on their gross without any deductions even for payroll and rent?

This is a system designed to force dispensaries to disobey the rules so they are easier to bust.
Click to expand...
As stated, I'm not familiar with the rules for MMJ dispensaries, but I would sure like to find out how a company can pay taxes without deducting expenses. If the company paid $60,000.00 for the materials and had gross sales of $100,000.00. Why in the Devil would the company pay taxes on $100,000.00. They have telephones, rent, insurance, etc. to conduct business. The govenment wants one to pay ones taxes even if what one is doing is illegal. The government saw that people were receiving alot of cash daily by "playing the numbers". The government got involve so that it could get a piece of the action. If the rules for MMJ dispensaries are as you say, I need to get back into the game to find loopholes and get paid!

T&T
 
Dan Kone

Dan Kone

Well-Known Member
Toss&Turn said:
I'm not familiar with the rules governing MMJ dispensaries. However, non-profits are authorized to conduct certain business operations. Any monetary gains on anything that is not related to their core business is taxable. For instance, the SF Main Library has many books, magazines. That is their core business to loan out books. People lose the books. The library is supposed to charge the price of the book or one can purchase the book and give it to the library. No taxes or scrutinization. The library also has a cafe in it. All sales in the cafe are fully taxable because the library is not in the restaruant business. All items that you purchase that has SF Library on it, (sweatshirts, mugs, etc.), are fully taxable. Under the rules of non-profits that were in place when I was in the field, the MMJ dispensary would be taxed on anything that is not medicinal related that they sold to their patients. Everything else, (ie. weed, edibles, bongs, papers, lighters, incense, etc.), is monies received and expended in the operations of the business. Of course, they are only supposed to charge what is needed to run the business. I hear that they charge outrageously, but I wouldn't know unless I saw the books. If all dispensaries charge the same amount, either it really costs the amount that they are charging or there is a nationwide conspiracy to inflate the prices of medical marijuana.

T&T
Click to expand...
The only thing dispensaries are allowed to deduct it the bud itself. Not rent, not payroll, not electricity, nothing. If they try to deduct those things they are now prosecuting them under the RICO act.

Google harborside IRS settlement for details.
 
dass

dass

Well-Known Member
i remember a time when the only place to get your card was in oakland and the only person to get your license from was dr. fry and the only store to go to was the 3rd floor.....anyone remember this story...once upon a time in i think santa cruz there was a raid on a grow op. the very next day everyone gathered at the courthouse and who ever showed up got free weed. im no longer in cali so i dont know if that still happens. probable not because of greed.
 
T

Toss&Turn

Well-Known Member
Dan Kone said:
The only thing dispensaries are allowed to deduct it the bud itself. Not rent, not payroll, not electricity, nothing. If they try to deduct those things they are now prosecuting them under the RICO act.

Google harborside IRS settlement for details.
Click to expand...
I googled the case and then googled the law, Section 280E of the IRS Revenue Code. Here is the law (The bold highlight is noteworthy):

No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.

Too bad that conjunction is or rather than and. If it had been and, we could argue that since medicinal use of marijuana is legal in California, both tests were not met and therefore the law was void on a technicality. Thirty years ago when the law was passed was the Reagan/Bush era. They were not stupid. They purposefully placed the or in the language just in case a State made one of the drugs legal. Well, many people voted for them. This is a fine example of what happens when we elect someone to legislate morals. I will read the case and the law itself to find out what the Hell is going on! The way it reads, one is not even allowed to deduct the Cost of Goods Sold (COGS)!

T&T
 
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