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Medical Marijuana Tax Deduction?


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#1 CharonTruffleHunt

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Posted 22 February 2017 - 03:39 PM

Ok, strange question here but a friend of mine and I are disagreeing on this: I am saying that in the state of California, medical marijuana is not tax deductible and, even if it was, you'd have to have spent over 10% of your income on it to use it as a deduction. He says that you can't deduct it on a federal tax but can on a state tax. Hoping someone can shed some light on this? 


Edited by CharonTruffleHunt, 22 February 2017 - 03:40 PM.

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#2 Sidestreet

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Posted 23 February 2017 - 06:57 AM

Consumer Reports says you definitely can't deduct it on your federal taxes, and probably not on your state taxes either.  But, it says to check with your state's tax authority to be sure.


Edited by Sidestreet, 23 February 2017 - 06:58 AM.

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#3 wildedibles

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Posted 23 February 2017 - 08:26 AM

....need to look up Canada ....but any herbals under what I know are not tax deductable .....which sucks I like herbal but I gave up cheaper meds for herbal ......way way cheaper since I have pharma meds covered but not herbals that work better and cover more symptoms than the pharma meds....
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#4 fungi2bwith

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Posted 23 February 2017 - 10:58 AM

It's still illegal on a federal level, and until that is changed, no, you can not deduct it on at least federal taxes.  State taxes....I would say do some research on your states laws regarding the subject.


Edited by fungi2bwith, 23 February 2017 - 11:00 AM.

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#5 Myc

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Posted 23 February 2017 - 11:01 AM

So my head is running with all of the potential complications here......

 

Assume that Medical MJ is tax deductible.

If I have a prescription and I am licensed to grow my own, can I write off the street value of said medication on my taxes? Ya know, like the cops do when they raid you and gather evidence. Weigh the pots, soil, vegetative plants, trim and shade leaves, etc.......Then write the whole lot off at say $15/ gram ??

(Just being facetious)

 

In my opinion, we just got permission (ha) to smoke pot in certain states.

Let's not start pushing the envelope just yet in trying to get The People to pay for our herbs. A tax deduction comes from somewhere - no government has any money to grant - it all comes ultimately from the pockets of The People (of which, you are one).

All other potential states are watching the current policies and adaptations. If Medical MJ turns into a quagmire, many states may choose to remain "dry". 

My thoughts:

Treat it like we always have. Don't ask. Don't tell. At least until we can get a majority of states to legalize.......then, by all means, have at it. 


Edited by Myc, 23 February 2017 - 11:01 AM.

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#6 CharonTruffleHunt

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Posted 23 February 2017 - 05:09 PM

Yeah, I don't actually spend even close to 10% of my taxable income on medical weed so I'm out no matter what. But he's trying to contact the Washington state tax authority now LOL 



#7 wharfrat

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Posted 23 February 2017 - 06:57 PM

here in WA, those who have a med authorization card, do NOT get charged state tax, we do however pay a marijuana tax and NO you can not claim it


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#8 wildedibles

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Posted 23 February 2017 - 09:28 PM

So my head is running with all of the potential complications here......
 
Assume that Medical MJ is tax deductible.
If I have a prescription and I am licensed to grow my own, can I write off the street value of said medication on my taxes? Ya know, like the cops do when they raid you and gather evidence. Weigh the pots, soil, vegetative plants, trim and shade leaves, etc.......Then write the whole lot off at say $15/ gram ??
(Just being facetious)
 
In my opinion, we just got permission (ha) to smoke pot in certain states.
Let's not start pushing the envelope just yet in trying to get The People to pay for our herbs. A tax deduction comes from somewhere - no government has any money to grant - it all comes ultimately from the pockets of The People (of which, you are one).
All other potential states are watching the current policies and adaptations. If Medical MJ turns into a quagmire, many states may choose to remain "dry". 
My thoughts:
Treat it like we always have. Don't ask. Don't tell. At least until we can get a majority of states to legalize.......then, by all means, have at it.


Well said thanks ;) In Canada it is legal on federal level but on my info packet I get every time with it says that this herb is not proven to help with any aliment and ya da bla .... herbs cannot be proven to heal anything unless there is proof and there is a standerdized extract given innstead there is many more rules for herbals than pharma meds ....well mean to say that herbs have to be researched like pharma meds to get even close to be covered or tax right of from the government ....I say wait tho too let the reaserch flow now that it is legal in some places :) Sick Kids Hospital in Toronto Ontario Canada is now doing reasearch on cannibis and epilepsy for kids that have a bad side effects to pharma meds ;)
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#9 fungi2bwith

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Posted 23 February 2017 - 09:54 PM

Here in AZ, MMJ dispensaries are regulated just like pharmacies......people have lost law suits to this fact.....so....technically, since a dispensary is considered a pharmacy in AZ, one should legally be able to do a state itemized deduction on MMJ purchased within the year.....just like pharmies....If ever audited, the "a dispensary is just like a pharmacy" card could be played with the help of an experienced lawyer, and 99% chance you would win that, with the number of cases that have been overturned due to this ruling(people growing within the 25 mile rule is usually the case).....in other words, the state fucked itself by fucking the regular joe.....


Edited by fungi2bwith, 23 February 2017 - 10:01 PM.

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#10 wildedibles

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Posted 24 February 2017 - 01:49 AM

Maybe I should ask my accountant (need one for my business anyway)

......do you guys have to do taxes twice? one for state and one federal?? that must suck if I hear what you are saying tax time is hard enough doing it once ;)
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#11 Sidestreet

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Posted 24 February 2017 - 07:00 AM

More like three times if you live in a city that has an income tax... or four times if you changed cities and both have tax.  :deadhorse:

 

I use tax prep software that makes it pretty easy.  Not fun, but easy.


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#12 Myc

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Posted 24 February 2017 - 10:09 AM

Save yourself some grief Wildedibles - use an accountant (at least to get yourself familiarized with the processes). I still use the same accountant and over the years, they have worked to help me take on some of the responsibilities for which I hired them originally. Granted, I paid for a couple of "in-office" training visits, but is was worth every freaking penny. 

 

If you are privileged enough to own your own enterprise the corporations have the table tilted against you. I don't know how it works in Canada but here in the US, they like to saddle ALL businesses with the same obligations and responsibilities. Big corporations hire entire divisions to handle this complex paperwork. It is a profession in and of itself requiring mastery and continuing education just like any other skilled trade. Small businesses tend to get gobbled up with fines, penalties, and interest - which, unlike the big corporations, we have to pay. It is a system by which to ensure that nothing ever changes for the better. 

Welcome to the club. 


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