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I should have said, "to remain compliant with the State's Attorney General's guidelines". Again, these guidelines are presented as suggestions for remaining compliant, but are also how law enforce t determines who is legally compliant.

If you were to be prosecuted and they looked at your receipts you would not be compliant. The burden of proof would be on them, but your books would prove that you are not ensuring all purchases are made from members of the collective. I know that they would have to prove that, but it seems they...

I understand, they mean that they "pull it back" by accounting for purchases as a cost of goods sold, thereby reducing your taxable income. It's all reasonable, I suppose even in case of an audit you would be able to pull out your receipts. However, receipts for income and expenses are required...

My accountant and lawyer both find it necessary, in the case of an audit, to 1099. Most member growers do not want this, so by following the reimbursement model we usually do not, however they say we should in the case of an audit. It's not like our receipts go to the IRS, but I am concerned...

Hey Dan, How do you ensure that you can prove to the state or federal authorities that you are not diverting marijuana(i very much dislike that word) outside of the membership if the vendor id is not linked to any particular member? Truly, I need to know and appreciate your insight.

This thread was posted under CALIFORNIA patients, so I believe the poster was asking about how people operate in California. Laws vary state to state. Yes, banking is an issue, which is why many collectives use parent or subsidiary non-profits to get accounts in order to pay taxes. Otherwise...

In California medical marijuana collectives must pay sales tax, I personally must collect 7.5% of gross sales in sales tax, which gets paid to the Board of Equalization. See the California Attorney General's Guidelines: 2.Business Licenses, Sales Tax, and Seller’s Permits: The State Board of...

Yep, damned if you do, damned if you don't. This psuedo legal crap is just that, crap. If we were to follow all of the regulations we would be taxed out of existence. Even our lawyers don't know how to advise us in this climate of partial legality. Until it is rescheduled I don't have a lot of...

Unless it's a cost of goods sold, that is still allowed under the Federal Income Tax Code 280E that disallows deductions for federally illegal businesses. You are still allowed to deduct your cost of goods sold and any deductions allocated to the non-marijuana aspects of the business. A federal...

I replied to your most recent post on this subject, so I will reply with the same info here, in case you are still interested and don't see the other one. I am going through the same thing as you are, trying to stay compliant and realizing nobody else is managing to do so and some of these...

Not true, unless a non-profit qualifies for tax exempt status they are still liable for sales tax as well as federal and state income tax. Non-profits still pay taxes. Non-profit does not mean non-taxed. Some collectives 1099 vendors, but volunteers receiving reimbursements from a non-profit...