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scar1et_f1re
Platinum Boarder
Posts:4900
R U Kind?

Re: Anyone watching Marijuana stocks??

#116762 2 years, 7 months ago
Strider1 wrote:
Denver Man wrote:
Sounds like a great idea!

God bless the dispensaries!! The only way to obtain top notch edibles. Just got to hope the feds keep their damn noses out of the state's business.



This is the biggest concern with investing in any MJ stocks. If the Feds decide to get heavy handed, these stocks could become worthless in less than a day!


My concern would be the big boys (RJ Reynolds / Phillip Morris - (Now Altrea group I think)) would tear these companies to shreds if it was legalized.

However, I don't see even the govt shutting down the big guys once they get the green light. The problem as I see it is this stupid Federal law that needs to be repealed. It may be legal, but if it;s illegal on the federal level, most corporate charters prevent corporations from being involved in illegal activity.

And as a tax issue, I know the money you make from selling illegal drugs is taxable, but the expenses to obtain the product are not tax deductible. I don't know how these rules apply to dispensaries operating legally, but those are the rules for joe the drug dealer. T
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Strider1
Platinum Boarder
Posts:2389
PMA - Positive Mental Attitude

Re: Anyone watching Marijuana stocks??

#116781 2 years, 7 months ago
scar1et_f1re wrote:
Strider1 wrote:
Denver Man wrote:
Sounds like a great idea!

God bless the dispensaries!! The only way to obtain top notch edibles. Just got to hope the feds keep their damn noses out of the state's business.



This is the biggest concern with investing in any MJ stocks. If the Feds decide to get heavy handed, these stocks could become worthless in less than a day!


My concern would be the big boys (RJ Reynolds / Phillip Morris - (Now Altrea group I think)) would tear these companies to shreds if it was legalized.

However, I don't see even the govt shutting down the big guys once they get the green light. The problem as I see it is this stupid Federal law that needs to be repealed. It may be legal, but if it;s illegal on the federal level, most corporate charters prevent corporations from being involved in illegal activity.

And as a tax issue, I know the money you make from selling illegal drugs is taxable, but the expenses to obtain the product are not tax deductible. I don't know how these rules apply to dispensaries operating legally, but those are the rules for joe the drug dealer. T



It's called the 280E rule. The IRS created it to prevent drug cartels, traffickers, and dealers from deducting business expenses from their income. This obviously would only come into play when the IRS convicted them of tax evasion, which was and is a tool used to bust them when they can't convict them for the actual drug violation.

I know that at least one dispensary (Harborside in Oakland) has had the IRS invoke the 280e on them. Harborside, being a legitimate business in California filed their federal tax return and paid taxes due. However, since Harborside's business is illegal in the eyes of the federal government, the IRS is telling them they owe an additional 2.5 million in taxes because all of the deductions on their return were disallowed due to the 280e rule.

Sticky situation no doubt. I will be interested to see how this turns out, as well as the impending battles between some states and the fed, especially since some states have now come to rely on the taxes and fees in this industry for their budget. These states now have a dog in this fight with the fed and will help to defend the dispensaries from attacks that threaten their viability.
Takin' it in stride!
Last Edit: 2 years, 7 months ago by Strider1.
FurthurFlower67
Platinum Boarder
Posts:5021
Good Love!

Re: Anyone watching Marijuana stocks??

#116815 2 years, 7 months ago
In my state Missouri they are trying to get a thing on the November ballet for people to vote if they want to end marijuana prohibition. If it passes that means anyone 21 and over may purchase it. License will be in place to sell it. It would be taxed by the pound. And this money could be something great for Missouri!

Not that I see this passing. But I'm hopeful and will do my part in spreading the message and vote!

stopthedrugwar.org/chronicle/2012/jan/27...ve_end_marijuana_pro
Dreams are lies...it's the dreaming that's real!!!!
The following user(s) said Thank You: SunshineSue, Strider1
Dire Wolf
Platinum Boarder
Posts:1432
when the police knocked y'all...

Re: Anyone watching Marijuana stocks??

#116934 2 years, 7 months ago
wlewis wrote:
well that's good to hear IH:huh:

getting it flown in from cali seems to be a popular trend


That's cause the market is getting flooded in California and a lot of people are growing jn relative safety and then shipping out of state in order to bring the cash back home. Wait til pot becomes legal in the northeast. California may be the growers but guess where the get a lot of their most popular strains and genetics from....that's right new England!
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