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Tantrika
Miss Ann Thrope




Registered: 03/26/12
Posts: 17,138
Loc: Lashed to the pyre
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Canada Revenue Agency says you can claim medical marijuana on your taxes
#22226659 - 09/12/15 11:12 AM (8 years, 4 months ago) |
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Quote:
The Canada Revenue Agency has confirmed that it will allow the costs of medical marijuana purchased from a licensed producer as a medical expense despite the fact that the Income Tax Act does not as yet recognize the enabling legislation.
The news, according to wawa-news.com, came in an August 24 letter from the CRA to the Canadian Medical Cannabis Industry Association, which has been lobbying the CRA to clarify the issue.
The ITA allows deductions for prescription medicines, but not for non-prescription or over-the-counter drugs even when they are recommended by a physician. As it turns out, Health Canada’s Marijuana for Medical Purposes Regulation requires a prescription. The uncertainty had arisen because amendments to the ITA recognizing the MMPR have not yet been introduced.
“This is an important step in acknowledging the legitimacy of the way patients use medical cannabis, to help manage the symptoms of a range of health conditions,” said Neil Belot, Executive Director of the CMCIA. “We have been working with the CRA and the Department of Finance for several months to clarify this issue, and we’re extremely pleased that cannabis regulated by Health Canada has been recognized as an allowable tax expense. It’s very good news, and will help make the use of cannabis as medicine more accessible and affordable for patients.”
But tax lawyer David Rotfleisch of Rotfleisch & Samulovitch Professional Corporation says that CRA recognition of health-related expenses is still too limited.
“It’s very good that CRA is recognizing medical marijuana as eligible since it is clearly a physician prescribed remedy,” he says. “However, CRA takes the position that physician prescribed natural remedies, including vitamins, even if [purchased] pursuant to a written physician prescription are not eligible medical expenses.”
On principle, Rotfleisch adds, it’s difficult to distinguish between medically prescribed cannabis and other doctor prescribed natural remedies. He believes that even over-the-counter medications should qualify as medical expenses.
“Cold remedies are clearly effective in alleviating cold symptoms, but don’t qualify as medical expenses,” he says. “It seems to me that this is an area that needs a loosening of the rules by CRA.”
http://business.financialpost.com/legal-post/cra-says-you-can-claim-medical-marijuana-on-your-taxes
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my3rdeye



Registered: 08/10/12
Posts: 4,354
Loc: Canada
Last seen: 2 years, 8 months
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Re: Canada Revenue Agency says you can claim medical marijuana on your taxes [Re: Tantrika] 1
#22239298 - 09/15/15 12:01 AM (8 years, 4 months ago) |
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So my roommate uses "medical" cannabis to combat insomnia and can claim this on taxes. But I use beer to fall asleep. My use is just as medical as hers. Can I claim my beer use is medical now too? This is my problem with med pot. We create a two tier system where those who know how to manipulate the system get special treatment and cheap weed. And they totally sell it too, everyone I know with a card sells it too. It's a back door to beating taxes in places it's legal and a get out of jail free card in places it's not. When it's legal I don't want just pot stores no dispensaries I think everyone should pay the same price. Medical pot is going to cause so many problems, just legalize it for everyone. None of these issues would be coming up if pot were just legal like booze.
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Tantrika
Miss Ann Thrope




Registered: 03/26/12
Posts: 17,138
Loc: Lashed to the pyre
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Re: Canada Revenue Agency says you can claim medical marijuana on your taxes [Re: my3rdeye]
#22239840 - 09/15/15 06:20 AM (8 years, 4 months ago) |
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my3rdeye said: So my roommate uses "medical" cannabis to combat insomnia and can claim this on taxes. But I use beer to fall asleep. My use is just as medical as hers. Can I claim my beer use is medical now too? This is my problem with med pot. We create a two tier system where those who know how to manipulate the system get special treatment and cheap weed. And they totally sell it too, everyone I know with a card sells it too. It's a back door to beating taxes in places it's legal and a get out of jail free card in places it's not. When it's legal I don't want just pot stores no dispensaries I think everyone should pay the same price. Medical pot is going to cause so many problems, just legalize it for everyone. None of these issues would be coming up if pot were just legal like booze.
Bolded/underlined is an interesting point. Personally started using medical cannabis several years ago before the Canadian system changed to the current format.
Previously, we were licensed on an individual basis to grow our own or have someone designated to grow for us.
At the time, medical licenses were not easy to get, and the only people I knew with licenses aside from myself had cancer, HIV, arthritis, spinal cord injuries, and a couple more unusual cases such as an individual struck by lightning, and one mauled by a bear.
Over the years, licenses became more common and that demographic changed -- there also ended up being more and more busts and legal gardens shut down because of people selling illegally.
At that point, we transitioned into the current system and the original patients got hit with massive inability to cover their expenses, that is why companies in the new system had to start offering special reduced pricing, and now apparently tax breaks as well. Know that personally, even with the reduced pricing, my prescribed dosage now costs me two to five times as much as it would have before -- without the price cut, it would cost almost twice as much as it does currently. The new system is the Conservatives attempting to cut back on people selling medical cannabis to non-patients by taking away our right to produce our own.
Personally do not benefit from the tax breaks, as I am on disability and my income is not taxable to begin with. Due to being classed as low income I qualify for reduced pricing in the current system -- if I were gainfully employed I would have to pay full price (which is often more than street pricing in my area), but now I would get a tax break. It is good to see some effort to make it more affordable to people who have legitimate issues though.
I would prefer to get back to a system where we can legally grow our own. If we end up in a no-grow government-taxed legal system though, then I would prefer to at least see people with legitimate medical concerns have reduced pricing or taxes. Know that in Colorado, medical patients pay significantly less taxes on cannabis than retail buyers, and feel that is perfectly acceptable. Concerns of people gaming the system matter less to me than concerns over people who benefit from medical cannabis not being able to access sufficient doses.
The system is going to stay like this or get worse so long as the Conservatives are in power though. Personally voting Liberal, but basically so long as you get out and vote for anything but Harper you can expect improvements.
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sh4d0ws
LSx


Registered: 02/26/08
Posts: 12,086
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Re: Canada Revenue Agency says you can claim medical marijuana on your taxes [Re: Tantrika]
#22239917 - 09/15/15 07:05 AM (8 years, 4 months ago) |
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I doubt they would ever propose a no-grow taxed system. Maybe the conservatives, because they're stupid...but it would be way too fucking hard to implement. How are you going to tell people that cucumbers are legal, bought at the store, and taxed...but you can't grow pot if it's legal? I'm not talking hundreds of plants or anything either. I mean they really can't fucking say "no way, you can't grow 2 plants"
Good fucking luck. Half the cops already don't give a shit if you have 2 plants.
I have a question though. If I don't have medical insurance and am getting a helpful medicine (or potentially lifesaving) or something similar prescribed, or maybe something not covered under my medical insurance
Do I get to claim it on my taxes...cause I'm pretty sure I don't
That's bull shit.
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Tantrika
Miss Ann Thrope




Registered: 03/26/12
Posts: 17,138
Loc: Lashed to the pyre
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Re: Canada Revenue Agency says you can claim medical marijuana on your taxes [Re: sh4d0ws]
#22240044 - 09/15/15 07:54 AM (8 years, 4 months ago) |
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sh4d0ws said: I doubt they would ever propose a no-grow taxed system. Maybe the conservatives, because they're stupid...but it would be way too fucking hard to implement. How are you going to tell people that cucumbers are legal, bought at the store, and taxed...but you can't grow pot if it's legal? I'm not talking hundreds of plants or anything either. I mean they really can't fucking say "no way, you can't grow 2 plants"
Good fucking luck. Half the cops already don't give a shit if you have 2 plants. ...
Under current Canadian law, 4 plants or less is technically legal so long as you are not selling. The law is laid out with mandatory minimum sentences, but they do not really arise until over 5 plants.
When Health Canada was supplying us with growing licenses, my license was for 25 plants in order to cover my prescription.
Quote:
sh4d0ws said: ... I have a question though. If I don't have medical insurance and am getting a helpful medicine (or potentially lifesaving) or something similar prescribed, or maybe something not covered under my medical insurance
Do I get to claim it on my taxes...cause I'm pretty sure I don't
That's bull shit.
In Canada, if you do not have medical insurance you can claim your prescriptions on your taxes. The same is true if you have medical insurance but a particular medication is not covered; or if, for example, your insurance covers 80% you can claim the other 20% on your taxes. There are stipulations of cost threshold, but that is the general layout. This decision isn't a matter of giving cannabis a special status in this particular regard -- this brings cannabis in line with the rest of prescriptions in Canada, which we were not certain would be the case because it is not handled like standard prescriptions.
Anything that does not require a prescription is not covered though.
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