Do you have adblock enabled?
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(TaxProf)   To avoid taxes, should medical marijuana sellers operate as nonprofits?   (taxprof.typepad.com ) divider line
    More: Interesting, local taxes, United States Code, nonprofits, income taxes, tax exemption, marijuana sellers  
•       •       •

3417 clicks; posted to Main » on 04 Mar 2013 at 1:55 PM (3 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



184 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest


Oldest | « | 1 | 2 | 3 | 4 | » | Newest | Show all

 
2013-03-04 03:15:09 PM  

FloydA: WTF? You're saying that if I don't cheat, I'm a hypocrite? You've got some very strange ideas about what "hypocrite" means.

I guess 30 years of GOP anti-tax propaganda makes everyone who actually wants the society to function and is willing to pay for that look pretty stupid, huh?


No, you moron. He is saying that taking advantage of the tax deductions, credits, and exemptions in the tax code is not cheating and that you very likely do it yourself. He is right.
 
2013-03-04 03:15:36 PM  
we lose billions a year from churches..
 
2013-03-04 03:17:38 PM  

TrainingWheelsNeeded: Lucidz: Avoid taxes?  Wtf?  I thought part of the reason the red-eyed, dorito munching pot smokers were saying weed should be legalized was to tax it and that it would "solve the defecit"...

Now they're complaining about taxes?  WTH???

Do you want higher priced pot, or to go to prison.  Stoners are never happy.  Jeez.

considering this is about business operating tax and not commercial or sales tax which is were most believe "tax and cut deficit" help would come from I'd say you have no idea what you are blathering about.


So, the business owners are not taking business operational costs into account?  Most businesses, when faced with increased/unexpected/higher operational costs, increase the cost of the product to the end purchaser.

If they are not doing that, then that makes the business owners bad business men.
 
2013-03-04 03:17:50 PM  
shouldn't have to pay federal taxes on something that is a federal crime
 
2013-03-04 03:20:45 PM  

hardinparamedic: Nice to know that 80 years later, policies steeped in Racism and White Supremacy still permeate through the government in our drug policy.


It's all just that simple, man. I tell ya.
 
2013-03-04 03:23:36 PM  
If you want that type of business to continue as well as the continued proliferation of legal recreational use, I would suggest they continue to be "for profit" and pay taxes.  If the city/county/state can make money off of it then they will "support" it.  If not, it becomes a danger to "the children" and stuff; and you know what happens then.
 
2013-03-04 03:23:37 PM  

ecmoRandomNumbers: GAT_00: FFS, pay your farking taxes you sniveling little farks.

This.

Jesus Christ, tax-dodging has become our national sport.


If that's the model we want to go with then no business should be able to deduct any operating expenses.
 
2013-03-04 03:24:30 PM  

Lucidz: If they are not doing that, then that makes the business owners bad business men.


They're not allowed to do that under the tax law. That's the point of the article.
 
2013-03-04 03:25:03 PM  

gilgigamesh: BarkingUnicorn: Are  you serious?  Loan sharks should be allowed to deduct the cost of baseball bats?
Human traffickers should be allowed to deduct the costs of transportation?  More pertinently, heroin dealers should be allowed to deduct the cost of their product?

De-schedule MJ and this problem goes away.  You can't solve it by changing tax laws without a shiatload of undesirable consequences.

This has nothing to do with marijuana's drug classification. All you have to do is repeal this peak of the Drug War relic of a law. It serves no purpose anyway, except now to interfere with people who are abiding by their state's law.

Now if the DEA wants to go and start raiding dispensaries, that's a different issue that would require revisiting the drug classification system.


Actually it does. The tax law is based on proceeds of crime. Remove the crime and the tax law doesn't apply.

2 Birds, one nug.
 
2013-03-04 03:27:16 PM  

Lucidz: TrainingWheelsNeeded: Lucidz: Avoid taxes?  Wtf?  I thought part of the reason the red-eyed, dorito munching pot smokers were saying weed should be legalized was to tax it and that it would "solve the defecit"...

Now they're complaining about taxes?  WTH???

Do you want higher priced pot, or to go to prison.  Stoners are never happy.  Jeez.

considering this is about business operating tax and not commercial or sales tax which is were most believe "tax and cut deficit" help would come from I'd say you have no idea what you are blathering about.

So, the business owners are not taking business operational costs into account?  Most businesses, when faced with increased/unexpected/higher operational costs, increase the cost of the product to the end purchaser.

If they are not doing that, then that makes the business owners bad business men.


from earlier in thread: by Treehouse Engineer

Holy crap, did nobody RTFA? It's not about paying taxes, it's about controlled substance federal tax laws not allowing operating expenses to be deducted from gross income. The rest of the country pays taxes on net profit, but the MMJ industry is required to pay taxes on GROSS profits. This could result in the tax bill being higher than your net profit. Simply outrageous.

also see: a law called 280E that basically makes it so that they can't deduct anything as a business expense, including salaries.

Dispensaries have a whole set of tax laws only they are beholden too, beer, liquor, cigarette, pharmaceutical companies don't have these same obligations. seems unfair, huh?
 
2013-03-04 03:28:27 PM  

gilgigamesh: FloydA: WTF?  You're saying that if I don't cheat, I'm a hypocrite?

No, I am saying paying taxes on your net profit instead of your gross is not cheating, it's what every business has ever done in the history of taxed businesses.


Yes, and that is my legitimate tax burden.  That's what the law says I should pay, so I pay it.  I don't try to declare myself a 501(c) to get out of what I owe.  If that sounds hypocritical to you, well, I don't know what to say.
 
2013-03-04 03:29:22 PM  

vudukungfu: TheShavingofOccam123: How about this.

Everyone gets a few seeds. They can plant it somewhere in their house or on their property. They can consume it as they wish. If they go out into the public and incapable of functioning at a safe level, they can be arrested.
Nobody has to sell anything to anyone.

Nah. That's crazy talk.

Nation needs a Johnny Potseed. Travelling from field to field, planting potseeds.
Letting them grow free from GMO.
From sea to shining sea.


Reminds me of a time a friend that took a bunch of ground up shrooms and used a fertilizer machine to spread it in a field. Only time I ever saw the dude skip and sing with a smile on his face.
 
2013-03-04 03:29:43 PM  

headslacker: FloydA. You're an idiot.


Thank you for your eloquent, well-supported, and well thought out refutation of my point.  I find it very convincing of something.
 
2013-03-04 03:32:25 PM  

TrainingWheelsNeeded: The rest of the country pays taxes on net profit, but the MMJ industry is required to pay taxes on GROSS profits


Let's reword this so people have a better chance of understanding:  Businesses pay taxes on net profit, not gross income.  The law says marijuana, being federally illegal, is legally defined to just spring up on the ground in convenient, customer sized bags, so all for marijuana, you have pay taxes as if your operating expenses didn't exist.   This is only a problem for people who need to pay suppliers, utilities, workers, and other taxes with their proceeds.
 
2013-03-04 03:34:56 PM  
Just make it flat out LEGAL to grow and then tax the hell out of anyone stupid enough to buy it.
 
2013-03-04 03:35:03 PM  

FloydA: headslacker: FloydA. You're an idiot.

Thank you for your eloquent, well-supported, and well thought out refutation of my point.  I find it very convincing of something.


Any response with more complexity would have just confused you. He was just taking your mental disability into account.
 
2013-03-04 03:36:54 PM  

Real Women Drink Akvavit: Lucidz: If they are not doing that, then that makes the business owners bad business men.

They're not allowed to do that under the tax law. That's the point of the article.


They aren't allowed to increase the price of the product?????
 
2013-03-04 03:37:04 PM  

FloydA: gilgigamesh: FloydA: WTF?  You're saying that if I don't cheat, I'm a hypocrite?

No, I am saying paying taxes on your net profit instead of your gross is not cheating, it's what every business has ever done in the history of taxed businesses.

Yes, and that is my legitimate tax burden.  That's what the law says I should pay, so I pay it.  I don't try to declare myself a 501(c) to get out of what I owe.  If that sounds hypocritical to you, well, I don't know what to say.


In this case, we rewrote the tax law to make sure that marijuana dispensaries could not legally be operated profitably.  Now people want to use the tax code to their maximum benefit because we deliberately wrote the tax to punish them.  Any business is justified in being upset when federal tax code is rewritten in a nonsensical way just to prevent states from overriding federal drug laws, and are justified in restructuring in order to fit into a different part of the tax code without an unjust burden.
 
2013-03-04 03:38:19 PM  

TheJoe03: vudukungfu: LOLWhut?

The War on Drugs and the massive spike in incarceration rates (both done after the Civil Rights Movement) are considered to be based in institutionally racist policies. For example, white people use and sell drugs at about the same rate as as blacks and Latinos but the incarceration rates for those things are not even close to equal.



Wrong, fool. It was made illegal by the influence of DuPont which wanted to replace hemp rope, used in all ships, with it's new synthetic rope made of dacron fiber. This was tremendously profitable for DuPont as WWII was on the horizon. Then when it was discovered that Dacron stretched in seawater, Hemp For Victory was quickly pushed in the farmers till right after the war then it was back to fark you again.

And Nixon ramped up the drug war, after numerous studies, and testifying to Congress, by the American Medical Association, saying it was harmless, beneficial and should be legal, to get the Vietnam anti-war protesters off his lawn. Both times, pot was criminalized for the benefit of war profiteering.

Whites want legal pot as much as anybody else so take your racism and shove it.
 
2013-03-04 03:38:20 PM  

ShawnDoc: BafflerMeal: They all got shut down by the feds? When exactly?

Most are going underground or have closed.  The Feds in the last 12 months are going crazy trying to shut them all down.  Most medical MJ locators have almost no dispensaries left, they're all having to go delivery only, or word of mouth only.  The Feds are going after the landlords, threatening to confiscate an entire building/complex under drug forfeiture laws.

Or at least that's the way it is in my chunk of CA.


Same here

/NoCal
 
2013-03-04 03:38:52 PM  
Wow...this has to be a record for most people commenting like they know wtf they're talking about without even RTFA
 
2013-03-04 03:39:15 PM  

TrainingWheelsNeeded: Lucidz: TrainingWheelsNeeded: Lucidz: Avoid taxes?  Wtf?  I thought part of the reason the red-eyed, dorito munching pot smokers were saying weed should be legalized was to tax it and that it would "solve the defecit"...

Now they're complaining about taxes?  WTH???

Do you want higher priced pot, or to go to prison.  Stoners are never happy.  Jeez.

considering this is about business operating tax and not commercial or sales tax which is were most believe "tax and cut deficit" help would come from I'd say you have no idea what you are blathering about.

So, the business owners are not taking business operational costs into account?  Most businesses, when faced with increased/unexpected/higher operational costs, increase the cost of the product to the end purchaser.

If they are not doing that, then that makes the business owners bad business men.

from earlier in thread: by Treehouse Engineer

Holy crap, did nobody RTFA? It's not about paying taxes, it's about controlled substance federal tax laws not allowing operating expenses to be deducted from gross income. The rest of the country pays taxes on net profit, but the MMJ industry is required to pay taxes on GROSS profits. This could result in the tax bill being higher than your net profit. Simply outrageous.

also see: a law called 280E that basically makes it so that they can't deduct anything as a business expense, including salaries.

Dispensaries have a whole set of tax laws only they are beholden too, beer, liquor, cigarette, pharmaceutical companies don't have these same obligations. seems unfair, huh?


Pharmaceuticals aren't illegal on a federal level, so, no. Doesn't seem unfair at all.
 
2013-03-04 03:43:28 PM  

Mr Guy: FloydA: gilgigamesh: FloydA: WTF?  You're saying that if I don't cheat, I'm a hypocrite?

No, I am saying paying taxes on your net profit instead of your gross is not cheating, it's what every business has ever done in the history of taxed businesses.

Yes, and that is my legitimate tax burden.  That's what the law says I should pay, so I pay it.  I don't try to declare myself a 501(c) to get out of what I owe.  If that sounds hypocritical to you, well, I don't know what to say.

In this case, we rewrote the tax law to make sure that marijuana dispensaries could not legally be operated profitably.  Now people want to use the tax code to their maximum benefit because we deliberately wrote the tax to punish them.  Any business is justified in being upset when federal tax code is rewritten in a nonsensical way just to prevent states from overriding federal drug laws, and are justified in restructuring in order to fit into a different part of the tax code without an unjust burden.


So change the law.  If the federal tax code is written in a way that seems unfair to you, advocate for re-writing it and support candidates who consider that a priority.  If enough people agree that the tax code should be changed, those candidates will win and those policies will be enacted.
 
2013-03-04 03:44:10 PM  

FloydA: gilgigamesh: FloydA: WTF?  You're saying that if I don't cheat, I'm a hypocrite?

No, I am saying paying taxes on your net profit instead of your gross is not cheating, it's what every business has ever done in the history of taxed businesses.

Yes, and that is my legitimate tax burden.  That's what the law says I should pay, so I pay it.  I don't try to declare myself a 501(c) to get out of what I owe.  If that sounds hypocritical to you, well, I don't know what to say.



Speaking of legitimate tax burden, maybe there would be more support for taxes if they only paid for the good things you mention, and not for bloat and other shiat like the drug war, the TSA, generations of welfare, war profiteering, corporate welfare, tax cuts for the rich, policing the entire world, etc. Everyone else can add to this list of shiat they would rather our now excessive taxes did not have to pay for.
 
2013-03-04 03:44:49 PM  

keepitcherry: MaudlinMutantMollusk: Considering the "legal" prices are the same as the street prices, I'd say someone is making a profit whether they're reporting it or not

/someone needs to investigate price fixing in the market

Here in Northern California the "legal" prices are like double the price as the street prices for the same quality.


Where the fark do you live?  In San Francisco (commonly considered NorCal), the street prices are roughly 40-50/3.5grams.    The quality is... well, based mostly on opinion and I won't argue it.  Now, the club prices are set at 15/gram.  The quality is top notch by any standard, and it's consistent.  (this assumes you are buying buds, if you buy edibles or shake or whatever the pricing changes)

I don't know if you are just talking out your ass, or if you are getting ripped off by someone.  In either case, I think it's safe to say that you don't represent the average.
 
2013-03-04 03:45:08 PM  

FloydA: gilgigamesh: FloydA: WTF?  You're saying that if I don't cheat, I'm a hypocrite?

No, I am saying paying taxes on your net profit instead of your gross is not cheating, it's what every business has ever done in the history of taxed businesses.

Yes, and that is my legitimate tax burden.  That's what the law says I should pay, so I pay it.  I don't try to declare myself a 501(c) to get out of what I owe.  If that sounds hypocritical to you, well, I don't know what to say.


If you try to declare yourself as a 501(c) to avoid paying income taxes, that would be tax fraud. If a business obtains approval of 501(c) status, that is legal (assuming, of course, that after expenses the business does not generate a profit).

If they operate as a nonprofit, they are using a legal method to avoid an onerous, punitive tax which would otherwise make it literally impossible for them to operate.

Now, I should qualify all this by stressing that I seriously doubt the IRS would approve 501(c) status for dispensaries. But if this would actually succeed, it should be applauded. Using this archaic law to punish people operating legal businesses under state law is a violation of the principles of federalism.
 
2013-03-04 03:56:32 PM  
Gubment do take a bite.
 
2013-03-04 03:58:07 PM  

WeenerGord: It was made illegal by the influence of DuPont which wanted to replace hemp rope, used in all ships, with it's new synthetic rope made of dacron fiber


That dacron stuff, they make that out of Oil, right?
They have a processing plant in Dacron, Ohio.

Why doesn't a TV show ever show this truths so the American people will know.
It should be on the history channel.
You would think someone could produce a show that shows all of this profiteering on war by making weed a crime.
Seriously.
Do I need to go over to Boing Boing and shout out for a kickstart on production of such a series?
 
2013-03-04 03:58:15 PM  

itsanillusionmichael: Wow...this has to be a record for most people commenting like they know wtf they're talking about without even RTFA


You got that right.

Let's just convert this into a bud-pron thread.  Post pics of the medicine in question.
 
2013-03-04 03:58:24 PM  

FloydA:  If enough people agree that the tax code should be changed, those candidates will win and those policies will be enacted.


That sounds good in theory, but it never works that way in real life.  Colorado has legalized marijuana because ... our state representatives followed the will of the people and passed a legalization law?  Hell no.  It was legalized through a referendum, a direct vote of the people on the issue.  If left to our politicians, there would be no movement on this issue.

If you think elected officials represent voters, you are naive.
 
2013-03-04 03:59:30 PM  

umad: FloydA: headslacker: FloydA. You're an idiot.

Thank you for your eloquent, well-supported, and well thought out refutation of my point.  I find it very convincing of something.

Any response with more complexity would have just confused you. He was just taking your mental disability into account.


Smaller words bro. I think you just broke him.
 
2013-03-04 04:04:04 PM  

Rodeodoc: SnakeLee: so all of a sudden all of their transactions went cash only.

So it's a cash only business but their taxes are higher than their profits?  Someone doesn't understand the basics of "cash only business".


280E was obviously passed before the credit card companies and banks took away their ability to use credit cards and bank accounts.  Try to reread it again
 
2013-03-04 04:06:22 PM  

Lucidz: Real Women Drink Akvavit: Lucidz: If they are not doing that, then that makes the business owners bad business men.

They're not allowed to do that under the tax law. That's the point of the article.

They aren't allowed to increase the price of the product?????


They're still paying taxes on the gross income, no matter what it is, and they're not permitted under our state laws to sell for profit and to compound the problem, they cannot deduct salaries, or any other operating expenses under the federal tax law. Your argument was that they were bad businessmen for not deducting those things as other businesses do, not about pricing at the retail level. Pricing can vary wildly based on location. This raising of prices in some areas is why we still have illegal grows mucking up state and federal forests and parks. In some areas it really is cheaper (not to mention easier) to buy it from the shifty dude on the corner, who may or may not be Mara Salvatrucha (though I think they're more the weapons specialists in my area) than it is to buy it from a state licensed dispensary.
 
2013-03-04 04:06:54 PM  

FloydA: So change the law. If the federal tax code is written in a way that seems unfair to you, advocate for re-writing it and support candidates who consider that a priority. If enough people agree that the tax code should be changed, those candidates will win and those policies will be enacted.


Glad you caught up.  Since the law is unfair, this article is discussing one method of changing your tax status: through non profit status.  Changing the law is a slower but more direct method.  Glad you agree with us, that if the government is insisting on taxing marijuana unfairly, marijuana growers are wise to legally operate as a non-profit if available, and to promote changes to the tax law.
 
2013-03-04 04:06:55 PM  

Lucidz: Real Women Drink Akvavit: Lucidz: If they are not doing that, then that makes the business owners bad business men.

They're not allowed to do that under the tax law. That's the point of the article.

They aren't allowed to increase the price of the product?????


it wouldn't matter, their tax code is based on NET PROFITS. no other industry works this way. And as far as pharmaceuticals not being illegal on a federal level, just come on, man. I mean really, come on. :) You're kinda missing the point of the article and shifting your debate.
 
2013-03-04 04:10:58 PM  

ShawnDoc: The Feds are going after the landlords, threatening to confiscate an entire building/complex under drug forfeiture laws.


I wonder how long Kelo would stand up if the states started eminent domaining those seized buildings and giving them back to the dispensaries -- you know, to increase tax revenue.
 
2013-03-04 04:24:43 PM  
In New Mexico, all dispenseries are non-profit 501C3 corporations.  The issue 90% of Farkers above do not understand is that normal business expenses - including salaries, leases, fuel, electricity and other "normal" expenses that every other corporation in America gets to deduct to get to "net profits" are not allowed so cannabis is taxed on Gross Revenues, which would cause most corporations to go bankrupt or to double prices!  If cannabis were legal, prices should be $25-$50 per Pound, not $10-$15 per gram or $250-$400 per ounce!
 
2013-03-04 04:30:14 PM  

Kahabut: keepitcherry: MaudlinMutantMollusk: Considering the "legal" prices are the same as the street prices, I'd say someone is making a profit whether they're reporting it or not

/someone needs to investigate price fixing in the market

Here in Northern California the "legal" prices are like double the price as the street prices for the same quality.

Where the fark do you live?  In San Francisco (commonly considered NorCal), the street prices are roughly 40-50/3.5grams.    The quality is... well, based mostly on opinion and I won't argue it.  Now, the club prices are set at 15/gram.  The quality is top notch by any standard, and it's consistent.  (this assumes you are buying buds, if you buy edibles or shake or whatever the pricing changes)

I don't know if you are just talking out your ass, or if you are getting ripped off by someone.  In either case, I think it's safe to say that you don't represent the average.


Hell you're still getting ripped off.

/SoCal, $5/g White Widow, prime.
 
2013-03-04 04:31:30 PM  

Rogue Surf: If cannabis were legal, prices should be $25-$50 per Pound


That's about what it costs me growing using LED and being smart utilizing efficient and conservative technologies.
 
2013-03-04 04:32:21 PM  

modesto: Anything medical should be non profit.


Word. Charge half a million for a new heart.

/Stiff the donor./

{ScumbagSteve.jpg}
 
2013-03-04 04:34:10 PM  

Keyser_Soze_Death: I guess no one read TFA, where it talks about a 75% federal tax being at issue.

/tax any business at 75% and it literally becomes a non-profit operation.


Here in Washington, cigarettes are taxed at 90%. There is no shortage of people selling them very profitably.
 
2013-03-04 04:35:31 PM  

Rogue Surf: In New Mexico, all dispenseries are non-profit 501C3 corporations.  The issue 90% of Farkers above do not understand is that normal business expenses - including salaries, leases, fuel, electricity and other "normal" expenses that every other corporation in America gets to deduct to get to "net profits" are not allowed so cannabis is taxed on Gross Revenues, which would cause most corporations to go bankrupt or to double prices!  If cannabis were legal, prices should be $25-$50 per Pound, not $10-$15 per gram or $250-$400 per ounce!


Maybe a word problem would help.

Joe Consumer is used to paying 100 dollars a week to pet bunnies.  There's a farm down the road with a lot of bunnies on it, and for 100 bucks, his buddy will watch the gate while he sneaks in and pets bunnies.  The government gets involved.  They let someone open a bunny petting ranch.  They can raise bunnies for 80 dollars a week, of which $40 is payroll.  The government declares that bunnies are rodents, and rabbits are a big problem in Australia, so if you raise bunnies, you have to pay luxury taxes on the product, sales taxes, pay roll taxes, real estate taxes, local taxes, city taxes, and income tax on the money, but you don't get to deduct anything on your taxes, because officially, bunnies aren't real to Americans because we don't like them.

So now you have a choice.  You can either raise bunnies, pay the 80 dollars it takes to raise them, pay all the taxes, pay taxes on your taxes (because you can't deduct your taxes against your taxes, because YOUR taxes are "from bunnies"), and pass that all on to the consumer, who chooses instead to sneak under the gate down the road, because it's 300% cheaper without government interference.

Then the federal government and ignorant people pat themselves on the back because "legalizing dispensaries didn't stop people from selling weed on the streets".
 
2013-03-04 04:41:13 PM  

Wrencher: Keyser_Soze_Death: I guess no one read TFA, where it talks about a 75% federal tax being at issue.

/tax any business at 75% and it literally becomes a non-profit operation.

Here in Washington, cigarettes are taxed at 90%. There is no shortage of people selling them very profitably.


They wouldn't be if tobacco took less time to air cure.  There's just no way to intelligently talk about this problem without admitting the biggest problem with marijuana is that if it wasn't illegal, it'd be approximately as difficult to be self sufficient with marijuana as it is to be self sufficient with tomatoes.   If you were allowed to stick a couple certified female seedlings from a local nursery into a deer proof tomato cage in your backyard, pretty much the whole country can grow weed by accident.  Some little old lady in Chicago managed to accidentally grow a bush the side of a small duplex off her back porch.  Everything difficult about marijuana cultivation stems from the need for secrecy.
 
2013-03-04 04:49:32 PM  

Mr Guy: If you were allowed to stick a couple certified female seedlings from a local nursery into a deer proof tomato cage in your backyard, pretty much the whole country can grow weed by accident. Some little old lady in Chicago managed to accidentally grow a bush the side of a small duplex off her back porch.


Growing a marijuana/hemp plant is easy, growing a high quality marijuana crop is not.  Go check out any hydroponics forum and look at all the hoops people jump through, and end up throwing away their plant and starting again.
 
2013-03-04 04:53:49 PM  

HAMMERTOE: modesto: Anything medical should be non profit.

Word. Charge half a million for a new heart.

/Stiff the donor./

{ScumbagSteve.jpg}


Missing the point entirely...there are certain things (human suffering mostly) that shouldn't be making a profit. I don't see anyway you can argue with that without completely ignoring basic morality.
 
2013-03-04 05:13:19 PM  
The Rockefellers do.

/see Eustace Mullins
 
2013-03-04 05:15:31 PM  
STATES' RIGHTS !!!!

75% tax rate with no business deductions?
PLEASE .... these people need to get better lobbyists
 
2013-03-04 05:18:14 PM  

gilgigamesh: BarkingUnicorn: Are  you serious?  Loan sharks should be allowed to deduct the cost of baseball bats?
Human traffickers should be allowed to deduct the costs of transportation?  More pertinently, heroin dealers should be allowed to deduct the cost of their product?

De-schedule MJ and this problem goes away.  You can't solve it by changing tax laws without a shiatload of undesirable consequences.

This has nothing to do with marijuana's drug classification. All you have to do is repeal this peak of the Drug War relic of a law. It serves no purpose anyway, except now to interfere with people who are abiding by their state's law.

Now if the DEA wants to go and start raiding dispensaries, that's a different issue that would require revisiting the drug classification system.


Well no, eliminating that one drug-oriented tax law won't solve the problem.  The IRS does not allow deduction of expenses for illegal activities, period.  The way out is to make MJ businesses legal, not to let every criminal enterprise write off its expenses.
 
2013-03-04 05:43:29 PM  

BarkingUnicorn: gilgigamesh: BarkingUnicorn: Are  you serious?  Loan sharks should be allowed to deduct the cost of baseball bats?
Human traffickers should be allowed to deduct the costs of transportation?  More pertinently, heroin dealers should be allowed to deduct the cost of their product?

De-schedule MJ and this problem goes away.  You can't solve it by changing tax laws without a shiatload of undesirable consequences.

This has nothing to do with marijuana's drug classification. All you have to do is repeal this peak of the Drug War relic of a law. It serves no purpose anyway, except now to interfere with people who are abiding by their state's law.

Now if the DEA wants to go and start raiding dispensaries, that's a different issue that would require revisiting the drug classification system.

Well no, eliminating that one drug-oriented tax law won't solve the problem.  The IRS does not allow deduction of expenses for illegal activities, period.  The way out is to make MJ businesses legal, not to let every criminal enterprise write off its expenses.


Actually, as divx88 pointed out upthread, it is indeed legal to deduct expenses incurred while running your business, even if that business is illegal. So sayeth SCOTUS in Commissioner v Tellier, where the Supreme Robewearers of the Land said the purpose of the tax law was to tax net income, not punish unlawful behavior. The major problem with 280E is that it says it is NOT legal to do so as it is written to specifically address only one kind of illegal behavior on the federal level, even though it is now legal behavior at the state level.

Apparently the Supreme Dudes and Dudettes, if any 280E litigation makes it to them, are going to have to smack some hands and point to the Commissioner v Tellier ruling that SCOTUS already made.
 
2013-03-04 05:53:14 PM  

Lucidz: TreehouseEngineer: Holy crap, did nobody RTFA? It's not about paying taxes, it's about controlled substance federal tax laws not allowing operating expenses to be deducted from gross income. The rest of the country pays taxes on net profit, but the MMJ industry is required to pay taxes on GROSS profits. This could result in the tax bill being higher than your net profit. Simply outrageous.

Additionally, to address other comments: Yes, it's a weed. And yes, getting it to grow and flower to produce  personal quantity of decent product is easy. But getting efficiently growing commercial quantities of GREAT product is NOT easy, or more correctly, is not cheap. If you can't subtract your costs for space, power, and labor from your gross profits due to some heavy-handed, and out-dated federal tax code, it will not be a for-profit business.

This is not about paying taxes, it is about being able to operate a profitable business.

/Farking, fark..

All I can hear is "WAAAAAAAAAAHHHHHH".  You don't want to get into an unprofitable business, don't start a weed business.  FFS, in California, the SELLERS (even the ass bags who pay no taxes) are now complaining that there is a glut of high quality weed available which has driven the cost of 1lb of good outdoor grown pot to $1200 or lower.  They're complaining because in this economy, too many people realized they can move to North Cali, rent some land (to hell with power, etc) and grow plenty of plants to sell (again, paying NO taxes, income or sales).

Seriously. NEVER HAPPY!!!

Sellers: WAAAAAAAAAH!!! We can't deduct some things like every other business even though we're selling an illicit (at federal level) drug!
Sellers: WAAAAAAAAAH!!! We're not making as much money because there's too many other dealers now!  There's too much pot out there!
Buyers: WAAAAAAAAAH!!! I never had to pay taxes when I bought it from Jethro, 50 miles away in the country! This is BS!!!


It's easy to fill a page with nonsense when you don't understand tax code.
 
Displayed 50 of 184 comments


Oldest | « | 1 | 2 | 3 | 4 | » | Newest | Show all


View Voting Results: Smartest and Funniest

This thread is archived, and closed to new comments.

Continue Farking
Submit a Link »
On Twitter






In Other Media


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.

Report