How Does Caregiver Income Get Taxed?

[xxsesimeseedxx]

anybody whp claims income from being a CG is fuxing HIGH on CHRONIC. Cash money ...no trace. No place to find it..

Well i do smoke CHRONIC but i'm still not reporting SHlT

[midwestcc]

Keep a spreadsheet of all expenses, caregivers, delivery(miles), consultation etc. My partner and I spent over 10k getting the equipment and bought a building to house all of this for our patients. We each split expenses/profit equally and keep track for the both of us as we get registered under and LLC. Since we spent the 10k into it we put the money from the patients back into the Business acct until we make enought to pay back our initial investment and then split evenly. But not claiming it if you are a registered caregiver is not cool as the state will be monitoring caregivers more closely.

[+mayorherb]

As a caregiver, am I required to report my income generated by my services? If so, is there a certain percentage? Feel free to elaborate as much as possible

Thanks in advance to all replies!

 

XxSesimeseedxX

this is not a income.You are not selling meds, you are getting reimbursted for your time n espenses.

[MiMedicalMJ]

Mayor, you still need to declare it.....

[+420Atheist]

anybody whp claims income from being a CG is fuxing HIGH on CHRONIC. Cash money ...no trace. No place to find it..

 

 

Wasn't that a quote from Al Capone? If you have income you have to claim it. My opinion is we are operating on the very fringes of a law that is vague at best. When LEO knocks on your door you had better have every duck in a row because if they want to get you bad enough tax evasion is a pretty good felony. Just ask Al.

[+420Atheist]

this is not a income.You are not selling meds, you are getting reimbursted for your time n espenses.

 

Reimbursement for your time is the definition of earned income.

[phaquetoo]

What type of patient services can an unlicensed individual with no specific educational experience deliver? Could this be like a faith healer, voodoo practitioner, medicine man, as well as cannabis caregiver? The IRS has rulings accepting these types of practices as home businesses? I can't believe everybody wouldn't being doing so just to get the tax breaks.

Coul your accountant cite some specific rules or rulings?

 

 

Wayne I like you! but im not going to pay for all of the people in this state that dont want to work! as I said I was self employed all of my life, I paid my way, Im getting ssdi and I doubt I will ever get back what i paid in! there is no way on gods green earth I will pay taxes on weed exchanges, (mm transfers, my bad) If I have to pay big brother for it? who do you think it is going to come from? my patients that cant afford their meds as it is? I dont need no stinkin lawyer, only if i do something against the law (lol) yea i know contradict myself! I think I would have a hard time being compasionate to patients if i had to pay taxes, how bout when I give it away do i get to write that off? (i know our state employment has gone to hell in a hand basket, time to change the guard, all you uaw workers that voted jenny in can thank yourselves for this mess) I was a union painter, drywaller, builder, im not anti union, im anti government that dont work, and only we the voters can fix it, vote out every one in office whether you like them or not, our government is broke and WE need to Fix it!

Peace!

Jim

[+420Atheist]

If we were selling embroidered throw pillows I probably would feel safe not reporting that income either. However we are engaging in activity that some people in power will do anything to make a point on. Tax evasion is a easy felony. Better safe than sorry.

[GanjaWarrior]

Do barbers and bar owners report their PROPEr Income..? Seriously why bother....Are you making 100k like some CG's say they are...lol....legally...lol....

 

So your 1,500 a month cash your getting as CG do you really want to get a payroll service on that like Paychex or ADP and pay uncle sam..? They already Robh is blind as it is...

 

The only reason California is in the state it is in, is because growers started paying taxes and politicians started noticing what they were missing out on. you show them they can make a mill off a small percent of the state all of a sudden they drop the gestapo act.

[+420Atheist]

The only reason California is in the state it is in, is because growers started paying taxes and politicians started noticing what they were missing out on. you show them they can make a mill off a small percent of the state all of a sudden they drop the gestapo act.

 

Good point. As I recall some dispensaries in CA even requested the tax on them be raised because they knew that was one thing that would protect their place in society.

[Meadow]

The dispensaries in CA don't care about the tax. They simply raised the price of meds to cover their side of the taxes. They are not making or spending any more money, simply shifting those costs directly to the patients. Last year what was $400/oz is now $430/oz thanks to the new tax.

[+420Atheist]

The dispensaries in CA don't care about the tax. They simply raised the price of meds to cover their side of the taxes. They are not making or spending any more money, simply shifting those costs directly to the patients. Last year what was $400/oz is now $430/oz thanks to the new tax.

 

And thanks to the new tax there is a good chance of CA legalising for everyone in November. Paying taxes helps the state recognise how much tax dollars they could be making by legalising as well as making it financial suicide for the state to even consider reversing any MM laws. Sorry but sin taxes like on tobacco and alcohol are necessary if the goals are to be met.

 

Also bartenders and waitresses were mentioned as not paying all the taxes on the money they make. Funny this should come up as NPR had a piece on yesterday about how the IRS was going after wait staff that was not paying their taxes. http://marketplace.publicradio.org/display/web/2010/06/09/pm-irs-keeping-tabs-on-restaurant-bar-tips/

[annie_r]

What type of patient services can an unlicensed individual with no specific educational experience deliver? Could this be like a faith healer, voodoo practitioner, medicine man, as well as cannabis caregiver? The IRS has rulings accepting these types of practices as home businesses? I can't believe everybody wouldn't being doing so just to get the tax breaks.

Coul your accountant cite some specific rules or rulings?

 

Actually, as a Root-worker/Healer I do claim my income under Spiritual Advisor and as an ordained Clergy-person in the state of Mi. I know this is not the topic but there seemed to be a bit of a 'tone' to your comment, like maybe Faith Healers and Voodou practioners are less-than legitimate.

 

Be Well-

Annie

[peanutbutter]

OK .. can't resist ..

 

How does a caregiver get taxed? Get married!

[+EdwardGlen]

This forum question works for me on two points.

 

1) I'm proud to say my daughter received her caregiver card and has signed her first two patients. I'm 52 and never did I dream that cannabis would be legal all be it for a certain segment of society...for now. And the fact that my daughter is helping a person get well or find relief from pain I couldn't be happier.

 

My second point addresses the question raised here about taxes. Save yourselves any worry and sleepless nights and go see an attorney(s) who has experience in cannabis law and or tax law.

 

Its what she is doing next week, I thinks its $300.00 well spent for two hours of consultation and production of some legal documents.

 

Until this law is fully accepted by all the best thing we can do as patients and caregivers is educate ourselves(as I'm sure we have)and seek professional legal advice when its warranted.

 

Peace

[esadmf]

dude just grow a tomato plant or 2 in between the rows meds. donate half the ripe tomatos to your local food bank. and get a reciept. sell the rest from your home to your patients. then right off all the grow costs and take a loss on meds. never mention you grow meds. dont lie and try not cheat on your tax too much. worked great last year for me

[+itssortalegal10]

The way it was explained to me is when I say detail a car I am not selling a taxable product..I am simply working or selling labor which can not be taxed. You cant sell the plant itself just charge for time and maybe nutes and electric..However nutes and electric are not being handed to a pt just the plant is so you call it a charge for your labor which cannot be taxed...Unless the tax lady I spoke with was wrong about labor not being taxable you are able to work tax free..I do think however that you are required to claim at the end of the year that amount of money regardless but then that goes deeper into tax law which I know little about.

[peanutbutter]

We lost an important post here.

 

Someone was talking about tax code section 280 e.

 

That section of code is very very important.

 

Please do pay your fair income taxes. However when you do avoid using the word marijuana in the schedule C.

 

If you mention marijuana on the schedule C you will be disallowed any deductions from gross income at all. You might have $2,000 in gross income and $1,500 in expenses. If you include the word marijuana on the form you will get a tax bill based on $1,500 in income.

[peanutbutter]

26 USC 280 - Sec. 280E. Expenditures in connection with the illegal sale of drugs

 

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.

 

--------------------------------------------------------

I understand that using the word marijuana on tax docs is a bad idea... that being said, not using that word on tax documents doesn't mean that is not what you are doing....

 

It seems to me if you were audited and they checked your "floriculture production" space they would conclude any income from that space was drug trafficking under Federal law even though State law explicitly says it isn't. Any deductions you would have taken for anything related to this would be disallowed and you would owe money and penalties.

 

"any trade or business if such trade or business (or the activities which comprise such trade or business)"

To me this would seem to cover the product(goods) or the production(service). It seems like to me you should just pay taxes on the income and take no deductions if you want to be safe.

 

The income tax system is designed to tax real income. Not fiction income. It is not intended to be used as a tool to punish people. Other legal systems are in place to deal with punishment.

 

280 e is a fluke within that system. It taxes fictional income. Not real income.

 

Example .. your patient hands you $300 to go pick them up an ounce. You go and pick up the ounce for the patient and then deliver it to them. You pay $300 for the ounce.

 

According to 280 e you have $300 income to pay taxes on. You received $300 and you are not allowed to offset that by the $300 paid to obtain the medicine for the patient.

 

Because you are not allowed to deduce the $300 expense, it represents a fictional income of $300.

 

Taxing fictional income is not what our income tax system was designed to do.

[peanutbutter]

26 USC 280 - Sec. 280E. -- snip --

 

BTW .. I'm trying to urge people to pay taxes. Not to hide legal income.

[tooldini]

I will just pay the taxes on the income myself till things get more defined in the law

[muckaluckaroo]

good points, fellow farmers, but obviously none of us are cpa's. i'm certainly not. i strongly suggest you give this guy a call and ask him to send you his "caregiver's checklist." the handout obtained at the brighton cc was very informative. the cpa seems to think the schedule f route is the best "under the radar" strategy. and farmers are given the best tax advantages. if/when i get audited, i want my professional tax man at my side.

 

frankly, i think its the guys running the dispensaries that will wind up with their appendage in the wringer before us "farmers." take the guy at the liberty clinic in a2 for example. the man has a atm in his shop for customers and doesn't write sales receipts. with those volumes of cash coming through the door, how long do you think he can go without an audit?

[Guest Marywanna]

As soon as CGs have to pay taxes on their product,you can bet your butt that prices will go WAY down. My comment will tinkle a lot of people off,but you all know it's true.

[pic book]

Ditto the last post. Claim farming? You don't qualify for a USDA subsidy. (The primary reason to claim farming.)

Edited September 11, 2013 by pic book

[pic book]

deleted

Edited September 11, 2013 by pic book