Caregivers, meet the IRS, DoR

[TheReleafCenter]

Medical marijuana rules: Top ganjapreneur Jill Lamoureux-Leigh weighs in on what comes next - Denver News - The Latest Word

Caregivers used to be able to buy wholesale from dispensaries. Now because marijuana can only be retailed at a center, a caregiver can't have retail sales tax license, so they will have to buy retail at the centers and pay sales tax on it -- and they can't pass that sales tax on to patients. However, the caregiver can charge for his or her services. If they are doing that, it needs to be properly licensed in their jurisdiction as a home-based business and reported to the IRS as a home-based income and the Colorado Department of Revenue as a service income.

TheReleafCenter Reviewed by TheReleafCenter on 07-23-2010. Caregivers, meet the IRS, DoR Medical marijuana rules: Top ganjapreneur Jill Lamoureux-Leigh weighs in on what comes next - Denver News - The Latest Word Rating: 5

[Zedleppelin]

This sounds to me more like fear mongering than actual truth. I've had many home based businesses, one that was making over half million a year and never needed any type of home based business license. The IRS or the DOR could care less that the businesses were home based (unless you are claiming a home office deduction) just as long as the income was reported which is fine by me, all the equipment, nutrients, water, electricity, mileage on my car, crop loss, etc will all be deductible. Also I havent had a chance to look into it but I also believe there are tax benefits for agriculture. Maybe I'll claim I am now a farmer and the govt can send me a check every year.

[HighPopalorum]

Zed,

Growers should also apply for the Obama tax credit for energy efficiency improvements, if they qualify. Energy efficient HVAC, insulation, and certain kinds of windows and doors all qualify for the credit, which is 30% of your expenses, up to $1500. Might save you some $$$, or at least allow you to use better technology at no added cost.

[TheReleafCenter]

This sounds to me more like fear mongering than actual truth. I've had many home based businesses, one that was making over half million a year and never needed any type of home based business license. The IRS or the DOR could care less that the businesses were home based (unless you are claiming a home office deduction) just as long as the income was reported which is fine by me, all the equipment, nutrients, water, electricity, mileage on my car, crop loss, etc will all be deductible. Also I havent had a chance to look into it but I also believe there are tax benefits for agriculture. Maybe I'll claim I am now a farmer and the govt can send me a check every year.

If your business is medical marijuana, you might draw additional scrutiny. I'd be up front regardless and get every tax benefit you can squeeze out of them.

[puntacometa]

Medical marijuana rules: Top ganjapreneur Jill Lamoureux-Leigh weighs in on what comes next - Denver News - The Latest Word

I have been doing that since I incorporated specifically to sell to my patients (and to dispensaries) last September. Paying taxes confers legitimacy...well.......hopefully.......