‘A whole lot of pain’: Legal marijuana industry prepares for tax day buzzkill

a reply to: doompornjunkie


Outdoor easily...in the right climates, indoor...no-way jose

I gotta say I never thought Colorado and other states would pass this. These crazy IRS laws may catch up, but the claws of profitability are deep with this subject. Too many fed employees getting paid to keep up the fear.

originally posted by: Expat888
a reply to: HumansEh

Nope.. uncle scam has long profited from the drug trade .. everywhere from the golden triangle to afghanistan .. uncle scam hates competition .. hence the reluctance to legalize it and the not allowing tax deductions for businesses in areas where its legal ..

Good point sir.

originally posted by: tothetenthpower
a reply to: doompornjunkie

I would also LOVE to see our source that weed can be grown (at very high quality) for $10/lb. I know for a fact that after supplies, utlities, and time it takes much more than $10/lb lol!

I've been growing for medical patients for a very, very long time. And yes, that's what it costs, at cost, to grow high quality MJ. I might be under valuing by a few bucks, 5 max but yeah. It's a very low cost crop.

Sure, you have to invest initially in the kind of setup that allows for that sort of thing, but it doesn't take very long to get to parity.

ETA: Actually one of the reasons parity arrives so quickly is because of tax write offs...

~Tenth

LIAR

Trimming costs alone!

$5???

At minimum wage that is only $40 mins of labor... IF LABOR WAS OUR YONLY COST! Maybe you should quit smoking and get back to reality. "High quality weed" as you stated, (not sure what the hell you grow for $5) cost quite a bit more.

Anyway, whether it should be legal or not shouldn't be determined by how much money the feds can yank out of it. Tenth... you should be able to sell your greens to anyone without them paying more than sales tax, or you shouldn't be able to seel them at all (unless medically). Any other way, and it's just people accepting that they are owned by the Feds.

Baaaa

originally posted by: tothetenthpower

The issue is that without tax incentives for business owners, it's more than likely allowing the black market to continue to flourish.

~Tenth

This is something I wonder about. In the states where MJ is now legal, are the cops even worried about the old markets that must still exist? I honestly don't know how this is viewed from an LEO perspective.

ETA: Tenth, do you have any issues with excessive regulations, or worry about raids in your line of work?

..reply got deleted brb

If alcohol and tobacco producers let alone drug companies can part take in the tax benefits, why can't legal growers/distributers/producers?

Oh, right...the moral inquisition is on their crusade to tell people what they can and can't do with their own minds and body through mindless and backwards policies and laws.

a reply to: network dude

ETA: Tenth, do you have any issues with excessive regulations, or worry about raids in your line of work?

No, I'm under contract to provide the service by the following:

1.Federal Government
2.Provincial Government.
3.Insurance Company

I am 100% protected in all aspects. Local LEO's actually keep a good presence in our neighborhood in order to deter theft or break ins to my "greenhouse". I enjoy all of the tax incentives that any other business does as well.

Sure I get hassled by some members of my community and some over zealous leo's in the past, but nothing out of the ordinary.

~Tenth

a reply to: Sparkymedic

Or the fact that the federal government still has pot as illegal. Until that changes you can't get federal tax deductions.

originally posted by: network dude
a reply to: tothetenthpower

Wouldn't the IRS accepting a tax payment for Pot related business be a felony as well? These idiots have been talking out of both sides of their mouths for so long, they don't even listen to themselves.

actually as silly as it sounds, you DO in fact have to pay taxes on gains from illegal activity. Al Capone was not in jail for his crimes, but because he didn't pay taxes on it.

I live in Washington State and there are some counties here, mine included, that are blocking any legal marijuana stores from opening. Therefore, I have to drive a few hours away to get my fix, which I don't do.

The truth is, I would rather buy legally than from someone on the black market. Right now, I don't partake at all because of it.

Idaho is worse, though. They are known as the "no tolerance" state.

God forbid a little person should be given the opportunity to capitalize on a money making opportunity. Will they be taxing other aspects of the Hemp industry at the same rate? What if a few cottage industries spring up to make Hemp rope, clothes, fuel etc.
It seems they have the mentality that there can only be so many rich people, if the store owners have too much money, then they can influence the way the laws are written, we cant have that now can we? Money is a powerful voice, if we keep the sheep in poverty, they cant influence or make changes the elites are uncomfortable with.
Im sick of taxation without representation. I live in N. California we have something like 1 state rep for like 10 counties.

originally posted by: tothetenthpower

The ban on deductions by the Internal Revenue Service is in place for one reason: Congress has declared every pot transaction a felony.

And the answer is....the pot is not sold and is free BUT the packaging must be paid for, therefore, NO sales are a felony.

a reply to: nerbot

its still distribution of a controlled substance, therefore illegal

I'm curious how the Fed handles taxing prostitutes in Nevada. It's kinda the same thing really. Are "state legal" brothels allowed to itemize on their federal returns?

Can they take deductions for things like:
Beds
condoms
sheets
oils
massage tables
funky furry handcuffs

Things that are not a crime to have but are used in the commission of a crime. Same as the legal marijuana industry is facing in states that legalized.

People said make it illegal, then they said make it legal but tax the #$%@ out of it, what will be the new battle cry?

Myself, I think if it was a plant and just a plant then people should be allowed to grow it like tomatoes and do whatever they want with it. However, we've progressed beyond that point. Marijuana has been meddled with to the point that it is becoming a dangerous drug (without needing to roll 151's). As it was made more powerful to increase the effects (everyone loves that) it became inevitable that it would never be as "accepted" as tobacco, which is tragic.

It doesn't help that many pot businesses are having trouble dealing with banks and have to operate on a cash only basis. This means they have to file to the IRS with cash. Except there is a penalty if you pay your taxes to the IRS with cash... This crap has been known about for a while and it is only going to get worse.

It's getting close to the time when the discrepancy between state and federal law is going to have to be addressed. Obama or the next President is running out of time to remain indifferent about this issue. Real, legal businesses are being infringed on by the government because of these problems and that can't last forever. The marijuana lobby is growing constantly.

I can't believe that people are afraid to let big business into the Marijuana industry. Without big business, the government is going to continue to walk all over the marijuana industry like in the OP.

Personally, I would rather buy off the black market, just because I would rather the 77% tax stay in my own neighborhood. The few people I know that grow a few plants, are families. They are decent hard working people with kids to raise. And a little extra cash is spent on their kids.
I also know a few people who are disabled that grow. Leave them alone, its hard enough already.

a reply to: tothetenthpower

And yet they are happy to receive taxes from these so-called felons.

a reply to: Krazysh0t

I can't believe that people are afraid to let big business into the Marijuana industry. Without big business, the government is going to continue to walk all over the marijuana industry like in the OP.

I'm afraid, but for different reasons. Yes having big business involved does mean less interference from government, but that means less people can get into the industry over the long run.

If Phillip Morris and Co decide to start converting ( and they are IMO, that's why the legalization was stalled for so long in Tobacco States) then the little guy like you or me will never be able to compete, because the cost of setup is going to be too much.

Other than that, I welcome them to get the ball rolling, but they can't take it over.

Wasn't there a Federal law passed in the mid 90's that placed a 100% tax on illegal drug profits?