If you make a profit selling or donating extra meds to a coop, do you pay taxes?

[KarlJay]

I've been told that if you have 'extra meds' you can donate them to the dispensary in California. If you make a profit from this (it's not called selling, but I guess it's the same thing), do you have to pay income taxes on what you sell and can you write off expenses?

 

[bobulak]

Karl i would ask a lawyer in the state of CALI B4 Id do anything like paying taxes

 

[KarlJay]

Yeah, I think your right. Thought there might be a few lawyers around here willing to get some free advice

 

[JustCurious79]

In order to get my things up and running I'd have to sell part of my crop. I'm not planning on growing in my bathroom forever, and even small tents are not very cheap.

 

[onavelzy]

I've been told that if you have 'extra meds' you can donate them to the dispensary in California. If you make a profit from this (it's not called selling, but I guess it's the same thing), do you have to pay income taxes on what you sell and can you write off expenses?

From the state board of equalization in CA:

in short, if you sell it, legal or not, you need to have a seller's permit and need to pay taxes. if you have sold it in the past, you need to pay taxes on what you sold.

i guess part of your question revolves around whether what is occurring in some of these dispensaries is really a sale or not when it is labelled by the involved parties as a donation. in the proposed definition, one side donates plant material and the other side donates money. i think any reasonable jury would see that as a sale, but a lawyer i am not.