Vending, 1099?

Last year I worked as a "Provider" and im a registered collective/cooperative.

Im back getting my tax info lined up and my delivery service and going back again 100% legit and paying taxes again.

Why do some people freak out with 1099? Im being asked by a club to do a 1099 and I see no problem what so ever as I have my state documents already done.

Thoughts on being legit and 1099?

Jesus, its not like I make a single cent as a provider!
I dont!

I think what the IRS is coming down on people is when they deduct expenses for growing. Since it's still illegal under federal law they would be breaking the law themselves to allow you to deduct expenses in what they see as a illegitimate business.

So if I don't deduct anything (Its a silly small amount to a compassionate club) and pay tax then im ok?
Thanks.

TheChosen said:

I think what the IRS is coming down on people is when they deduct expenses for growing. Since it's still illegal under federal law they would be breaking the law themselves to allow you to deduct expenses in what they see as a illegitimate business.

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Not exactly. The IRS is coming down on anyone who writes off any expenses due to selling. You can absolutely deduct your grow costs.

I do pay taxes on my income but I still won't deal with any club who makes me fill out a 1099 because I don't want to be on file with a club as a vendor in case they get raided.

Vendors on paper should look like any other patient who comes in to buy meds IMO. If a club doesn't do it like that, then I can't vend to them.

itsaplant said:

So if I don't deduct anything (Its a silly small amount to a compassionate club) and pay tax then im ok?
Thanks.

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You can deduct everything except for your gas money to drive it to the clubs along with a small amount of income that you are paying yourself as the labor for your sale. If you take a deduction on income related to a sale you open yourself up to a 280e investigation. You must pay yourself a small amount of money for the labor involved with the sale and that money is non-deductible. Definitely deduct all your growing expenses though as well as the labor involved in that grow.

That's what my accountant says who is a 215 specialist

http://www.hanklevycpa.com/

Dan, I get very little vending and I only vend to delivery people that also have very small services.
How much does your accountant cost per hour to get setup?
I got ass raped by two lawyers in Oakland already.

Decisions decisions...

Dan what if I just don't deduct jack shit? I vend almost nothing per year, just my "Extra"

EDIT: I intended to say how much does your accountant charge per hour and his setup fee?

I dont understand why your reporting this shit in the first place. If I grew and sold mj the IRS would never find out about it.

well the delivery guy asked for 1099 and Iv done it 2 years ago also.

Kaendar said:

I dont understand why your reporting this shit in the first place. If I grew and sold mj the IRS would never find out about it.

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Better to pay taxes than to be audited and have all of your assets seized

itsaplant said:

Dan, I get very little vending and I only vend to delivery people that also have very small services.
How much does your accountant cost per hour to get setup?
I got ass raped by two lawyers in Oakland already.

Decisions decisions...

Dan what if I just don't deduct jack shit? I vend almost nothing per year, just my "Extra"

EDIT: I intended to say how much does your accountant charge per hour and his setup fee?

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If it's only very small amounts, I'd just do it yourself on EZtax. It's pretty simple. Just make sure your deductions don't match up with your profits. Pay a little on it.

The accountant will charge you $500 to do it. What you're doing isn't complicated and shouldn't require an accountant.

Clown Baby said:

Better to pay taxes than to be audited and have all of your assets seized

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How can you be audited if you were never growing and selling weed in the first place? Wink wink.

It's things like this that make me miss the old days before this medical stuff. Back then not paying taxes was one of the attractive things about growing professionally.