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(TaxProf)   IRS bogarts medical marijuana pharmacy's deductions, drives founder into bankruptcy   (taxprof.typepad.com) divider line 128
    More: Interesting, IRS, personal bankruptcy, nonprofit corporation, state sales tax, itemized deduction, U.S. Tax Court, pharmacy, marijuana  
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9599 clicks; posted to Main » on 15 Jul 2012 at 12:49 PM   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-07-15 12:13:11 PM
Wow, could you imagine what would happen if the IRS cracked down on liquor stores?

PURE AWESOMENESS!
 
2012-07-15 12:47:28 PM
Thanks Obama!
 
2012-07-15 12:51:11 PM
Hey Obama, since you are so keen on putting medical marijuana out of business, why not tax the fark out of them? A 99% rating would decimate them, you asshole, and then you will get your wish.
 
2012-07-15 12:55:17 PM
For some reason these stories always remind me of The Big Lebowski.
I'd have paid Tara Reid the $1000.
 
2012-07-15 12:56:40 PM
It's hard to believe that anyone went into this business expecting any other result. Don't MMJ entrepreneurs hire accountants to advise them on tax matters?
 
2012-07-15 12:56:50 PM
cman: Hey Obama, since you are so keen on putting medical marijuana out of business, why not tax the fark out of them? A 99% rating would decimate them, you asshole, and then you will get your wish.

Decimating them would be 10%.
 
2012-07-15 12:58:50 PM
dryknife: cman: Hey Obama, since you are so keen on putting medical marijuana out of business, why not tax the fark out of them? A 99% rating would decimate them, you asshole, and then you will get your wish.

Decimating them would be 10%.


Some people really think Obama reads fark?

Also picture of Blogger was perfect, looks super baked
 
2012-07-15 01:01:31 PM
In a recession?
Let's put more people out of work!
 
2012-07-15 01:01:51 PM
So how's that change working out then?
 
2012-07-15 01:02:34 PM
dryknife: cman: Hey Obama, since you are so keen on putting medical marijuana out of business, why not tax the fark out of them? A 99% rating would decimate them, you asshole, and then you will get your wish.

Decimating them would be 10%.


Thank you.
 
2012-07-15 01:04:45 PM
dryknife: cman: Hey Obama, since you are so keen on putting medical marijuana out of business, why not tax the fark out of them? A 99% rating would decimate them, you asshole, and then you will get your wish.

Decimating them would be 10%.


You should feel bad for posting that. I have logged a formal grievance with the admins of this site to order the removal of all posts of this magnitude.
 
2012-07-15 01:04:55 PM
Shaw's personal income tax troubles stem from an IRS decision to deny business expense deductions to marijuana dispensaries under a provision Congress passed in 1982 that disallows deductions for "trafficking in controlled substances" as "prohibited by Federal law or the law of any State in which such trade or business is conducted."

You know, 1982. Back when Obama ruled the U.S. with an iron fist.
 
2012-07-15 01:05:30 PM
Grow your own. Keep your receipts.


The supplies ARE tax deductible, even if the feds won't allow the actual product to be deducted.
 
2012-07-15 01:07:24 PM
NutWrench: Shaw's personal income tax troubles stem from an IRS decision to deny business expense deductions to marijuana dispensaries under a provision Congress passed in 1982 that disallows deductions for "trafficking in controlled substances" as "prohibited by Federal law or the law of any State in which such trade or business is conducted."

You know, 1982. Back when Obama ruled the U.S. with an iron fist.


Yes, because its not like Obama campaigned on not doing this or anything
 
2012-07-15 01:10:13 PM
FTFA: Surprisingly, Shaw never incorporated the dispensary-as either a for-profit or not-for-profit corporation. Instead, she ran it as a sole-proprietorship, reporting its $1 million plus in annual sales and all its expenses on Schedule C of her individual 1040 tax return.


verydemotivational.files.wordpress.com
 
2012-07-15 01:11:20 PM
Welcome to Obama's America. Hooray for liberal democrats
 
2012-07-15 01:11:40 PM
only thing dumber than our military adventures over the last century.
 
2012-07-15 01:12:18 PM
Federal law supersedes state law
No matter what
Unless state law is more restrictive
 
2012-07-15 01:12:51 PM
Man can you imagine what they would do to someone if the IRS controlled the nation's healthcare?
 
2012-07-15 01:12:55 PM
GARY JOHNSON!
 
2012-07-15 01:14:10 PM
BarkingUnicorn: It's hard to believe that anyone went into this business expecting any other result. Don't MMJ entrepreneurs hire accountants to advise them on tax matters?

These operations aren't exactly run by shrewd business folks.

The shrewd folks are in the clandestine operations, where the money is.
 
2012-07-15 01:15:17 PM
Businessperson isn't very good businessperson, goes out of business. Film at eleven.
 
2012-07-15 01:17:19 PM
Just make sure we maintain the deductions for being married, having children, and owning a home! It's totally reasonable!
 
2012-07-15 01:19:20 PM
Why should this guy have to pay the penalty for doing things wrong? It's totally okay to not follow the rules if you don't think they're fair.
 
2012-07-15 01:20:27 PM
Pharmdawg: Federal law supersedes state law
No matter what*
Unless state law is more restrictive


*not meant to in anyway be taken as a factual statement of the actual currently controlling legal principles of federalism. feel free to completely disregard.
 
2012-07-15 01:22:52 PM
Why the fark wouldn't you incorporate?
 
2012-07-15 01:26:53 PM
Buck Henderson: Why the fark wouldn't you incorporate?

He was gonna do it, but then he got high
 
ZAZ [TotalFark]
2012-07-15 01:27:53 PM
Surprisingly, Shaw never incorporated the dispensary-as either a for-profit or not-for-profit corporation.

Life sucks for a corporation because the same rules apply. The lesson is lie on your tax return. You'll probably get away with it. If you don't a multimillion dollar tax judgment plus prison is about the same as a multimillion dollar tax judgment.
 
2012-07-15 01:28:26 PM
Owangotang: Just make sure we maintain the deductions for being married, having children, and owning a home! It's totally reasonable!

Deduction for being married? Are you serious? Perhaps you should read up on the marriage tax penalty.
 
2012-07-15 01:31:58 PM
RogermcAllen: dryknife: cman: Hey Obama, since you are so keen on putting medical marijuana out of business, why not tax the fark out of them? A 99% rating would decimate them, you asshole, and then you will get your wish.

Decimating them would be 10%.

You should feel bad for posting that. I have logged a formal grievance with the admins of this site to order the removal of all posts of this magnitude.


.
.
Take it even further comrade, report him to ATTACKWATCH!!!!
 
2012-07-15 01:34:30 PM
i911.photobucket.com
 
2012-07-15 01:34:56 PM
Buck Henderson: Why the fark wouldn't you incorporate?

That's a good question. If it's a hobby or whatever, go sole proprietorship. If you're working with the kind of bank this person was working with, incorporate. And hire an accountant and a lawyer (those consulting expenses are deductible, right?). That's too much money, not to incorporate.

Yearly minute requirements take 5 minutes, a boilerplate, and a printer.

It's too bad the IRS doesn't allow single owner non-profits....
 
2012-07-15 01:36:15 PM
I don't feel bad for her. She was lazy with her taxes and expects people to feel bad for her because pot is legal in California. She being the first person to open a pot dispensery should have known that the government would try to fark with her anyway they could.
 
2012-07-15 01:38:49 PM
You people have a constitution, don't you? One you're rather proud of, and justifiably so. Wouldn't it be a good idea if it specified exactly what happens when state law and federal law are in conflict?
 
2012-07-15 01:40:33 PM
stirfrybry: Welcome to Obama's America. Hooray for liberal democrats

Liberal and Democrat are oxymoron's since the Democratic Party is conservative/right wing. And I'm pretty sure the "liberal" wing of the Democratic Party is against this anyway.
 
2012-07-15 01:41:35 PM
orbister: You people have a constitution, don't you? One you're rather proud of, and justifiably so. Wouldn't it be a good idea if it specified exactly what happens when state law and federal law are in conflict?

http://en.wikipedia.org/wiki/Supremacy_Clause
 
2012-07-15 01:41:40 PM
ExperianScaresCthulhu: Buck Henderson: Why the fark wouldn't you incorporate?

That's a good question. If it's a hobby or whatever, go sole proprietorship. If you're working with the kind of bank this person was working with, incorporate. And hire an accountant and a lawyer (those consulting expenses are deductible, right?). That's too much money, not to incorporate.

Yearly minute requirements take 5 minutes, a boilerplate, and a printer.

It's too bad the IRS doesn't allow single owner non-profits....


That's not always good advice, my father has a company that does about $2M a year and they're still a S-corp because 90% of the profits are going to the two founders and so the total tax burden is significantly lower than if they were incorporated. Since most of their personal assets were used as loan collateral the incorporation shield was little incentive to take the tax hit.
 
2012-07-15 01:42:04 PM
dryknife: GARY JOHNSON!
 
2012-07-15 01:43:11 PM
Maryland government said this is why they did what they did: Having a registry and licensing dispensaries would get them raided by the Feds. Turns out I was wrong and they had the right idea (surprise, they're all lawyers who hire more lawyers to advise them).
 
2012-07-15 01:43:41 PM
Health Care Bill Contains Massive Expansion of IRS's Power - Requiring Up to 16,500 New IRS Employees


First they came for the cannabis dispensaries, and I didn't speak out because I wasn't a cannabis consumer.

Then they came for the fast food restaurants, and I didn't speak out because I wasn't a consumer of fast food.

Then they came for the "rich", and I didn't speak out because I didn't make a combined income of greater than $250,000.

Then they came for me and there was no one left to speak out for me.

Thank God I had my AR and ammo...
 
2012-07-15 01:44:31 PM
Owangotang: Just make sure we maintain the deductions for being married, having children, and owning a home! It's totally reasonable!

We must reward the privileged for being privileged and those who fall in line with our religiously influenced moral guidelines! Social engineering is great! Unless it helps the godless singles, childless, or homeless!
 
2012-07-15 01:44:59 PM
NutWrench: Shaw's personal income tax troubles stem from an IRS decision to deny business expense deductions to marijuana dispensaries under a provision Congress passed in 1982 that disallows deductions for "trafficking in controlled substances" as "prohibited by Federal law or the law of any State in which such trade or business is conducted."

You know, 1982. Back when Obama ruled the U.S. with an iron fist.


Can we agree that Der President is simply the current glove worn by the same fist?
 
2012-07-15 01:45:36 PM
orbister: You people have a constitution, don't you? One you're rather proud of, and justifiably so. Wouldn't it be a good idea if it specified exactly what happens when state law and federal law are in conflict?

It does say. The Interstate Commerce Clause supersedes everything.

You want to grow your own wheat? Fark you - ICC overrides your right to grow that wheat (see Wickard v Filburn). Once that precedent was set it means that the federal government can do whatever the fark it wants.
 
2012-07-15 01:46:45 PM
Perducci: Why should this guy have to pay the penalty for doing things wrong? It's totally okay to not follow the rules if you don't think they're fair.

Pretty much. Or we can choose your way, roll back all social progress and just go ahead and give back America to the UK. Which honestly, they'd probably do a better job anyway.
 
2012-07-15 01:47:12 PM
orbister: You people have a constitution, don't you? One you're rather proud of, and justifiably so. Wouldn't it be a good idea if it specified exactly what happens when state law and federal law are in conflict?

Well the way it's supposed to work is that a limited number of things are for the federal government to manage, and the rest is for the individual states, if anyone. So it would seem that state law should trump federal law. But, there's something called the "commerce clause" through which the feds have found a way in for a lot of evil things, and they've made the hole wide enough to drive a train through, in a nutshell.
 
2012-07-15 01:48:04 PM
I mean, I'll obviously be voting for Obama, 1) because I have no choice, and 2) because I have no choice. But I'm not going to sit around and pretend he's some kind of liberal. I dislike the man because he's a semi-right corporatist, and you need only look at the pathetic farking lip service he pays to civil liberties - his justice dept's treatment of medical marijuana being only once small facet.

/yes, I realize that this is the IRS, but bullshiat you can't tell me the president can't directly influence enforcement of such policies
 
2012-07-15 01:49:04 PM
MadameX: [i911.photobucket.com image 600x440]

Cool people grow their own or otherwise don't pay.
 
2012-07-15 01:49:38 PM
So then why aren't the pharmaceutical
company under the same law ?
 
2012-07-15 01:50:54 PM
HotLonelyTeenageGirl: NutWrench: Shaw's personal income tax troubles stem from an IRS decision to deny business expense deductions to marijuana dispensaries under a provision Congress passed in 1982 that disallows deductions for "trafficking in controlled substances" as "prohibited by Federal law or the law of any State in which such trade or business is conducted."

You know, 1982. Back when Obama ruled the U.S. with an iron fist.

Can we agree that Der President is simply the current glove worn by the same fist?


Certainly. Don't get me wrong: Obama is just as corporatist as Bush ever was. Just with 90% less smirk.
 
2012-07-15 01:57:15 PM
HotLonelyTeenageGirl: I mean, I'll obviously be voting for Obama, 1) because I have no choice, and 2) because I have no choice. But I'm not going to sit around and pretend he's some kind of liberal. I dislike the man because he's a semi-right corporatist, and you need only look at the pathetic farking lip service he pays to civil liberties - his justice dept's treatment of medical marijuana being only once small facet.

Then don't vote for him. The lesser of two evils is still damn evil, and it's about damn time that we stopped saying "I really hate hate HATE (Candidate A), but I'm still going to vote for him because of (Candidate B)." You DO have a choice. I'm not voting for either the douchebag or the turd sandwich, and it's about damn time that America do the same.
 
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