Growing, Showing, Tax Returns, and You

[CommonGround]

greetings fellow cannabis connoisseurs

i have some questions related to CA cannabis growing.
i would like to start growing meds as an occupation (some what) to earn enough to pay rent, bills, and a little reasonable compensation wouldnt be so bad either ; ). i was wondering if i am growing these meds and selling them exclusively to dispensaries how would i claim that money so i do not get audited? i would like to be able to have this whole thing be legal on paper to where i can put all the money in the bank and claim it on my yearly tax returns with growing supplies as a tax write off so on and so forth. anyone know how private growers do this or do all growers just keep their money in a shoebox under their bed? any information and/or ideas would be greatly appreciated........................

thank you,
-455M4N

 

[purpleatama]

Bank accounts are monitored by the federal government, Marijuana is illegal under federal law.

 

[420]

You need to hire an attorney and get everything setup properly.

Scot Candell - Medical Marijuana Attorney at Law

 

[CrackaJack]

You, me and everyone else....doesn't sound like it's all that easy. Heck, we aren't even allowed by the local govt to have co-ops here!! Their opinion is, if they don't buy it from the dispenseries, they can get it off the streets...

 

[purpleatama]

It's not easy. You need to properly set up a NPO first. As for tax returns, yes, you do need to report it, and I advise you keep very good records. As for the bank... well... Most people I know don't use them, as I stated above, they're federal level institutions. You could always use an offshore account, as long as all income and interest is reported properly, I see no problem with that.

 

[Wingman420]

You need to hire an attorney and get everything setup properly.

Scot Candell - Medical Marijuana Attorney at Law

Great Advice, while this is an emerging situation remember that even banks are refusing Dispensaries accounts in fear of Federal Money Laundering charges, and the revocation of their charter and licenses.

It's not easy. You need to properly set up a NPO first. As for tax returns, yes, you do need to report it, and I advise you keep very good records. As for the bank... well... Most people I know don't use them, as I stated above, they're federal level institutions. You could always use an offshore account, as long as all income and interest is reported properly, I see no problem with that.

I would advise an offshore acct in the Caymans where there is NO income Tax. Just remember no business starts off without an Attorney.