Owner, Principal Guske & Company
Scribe: Neil Bretvick Introduced by: Ann Norman
Our speaker Dean Guske, CPA was introduced by Ann Norman.
Dean talked about his work with companies in the legal marijuana business. 23 states have a medical statute; 4 with an adult use statute. Prior to these laws, it was a black market business in Washington and other states. Licensed businesses are heavily regulated. Dean got into the business through an individual who had some tax collection issues. This individual mentioned he was growing weed and needed some tax help. Dean decided to investigate the business and opportunities and pitfalls.
Businesses can only take a tax deduction for the cost of goods sold; no other business expenses are allowed. Federal laws create issues with banking and others who are subject to federal laws. A few banks have started working with some pot businesses. In Oregon only one credit union is currently banking these businesses.
There was a question from the group about how the money flow works, and the tax deductions. Using an example of $1 million, cost of goods sold of $500k and expenses of $400k, the business would be taxed on $500k, at 34% or $170k so a net loss after tax of $70k results.
Dean answered a question about client privilege which is different than what lawyers have. State law allows the business. Other issues of possible illegal activity would cause a decline of the client.
Dean discussed the issue of dealing with federal laws surrounding the business. He referred to a set of rules called the “Cole Memos”. The US Justice Department has said they won’t go after a business as long as retailer is not crossing state lines, selling to minors, etc.
Dean discussed the issues of having to deal with cash, and lack of banking options, making operations difficult for these businesses.
At the conclusion, President Paul brought out some “brownies” to share.
Rotary First Harvest donation of 1,000 lbs of fresh produce was made in Dean’s honor courtesy of Francine Weaver and Your Equity Services.
President Paul Chapman opened the meeting. Steve Roberts led with the inspirational thought and Pledge of Allegiance.
Wendi Fisher, standing in for Scott Sadler, introduced visiting Rotarians and guests.
Rotarian of the Month – Bob Vallat
Bob Vallat, recognized for his many contributions to the club, was belatedly honored as Rotarian of the Month for August, 2015.
Vocational Minute – Alex Chehab
The Vocational Minute was shared by member Alex Chehab. Alex is a Behavioral Analyst with Northwest Behavioral Associates, where she focuses on working with children with autism, ADHD, and other behavioral issues. Alex is also a teacher, and provides support for schools, where she helps young students to develop social skills, and provides support for family members. Alex is also involved with advocacy efforts, including getting insurance companies to cover certain behavioral conditions.
All In For Autism Update
There was an “All in For Autism” update, involving a “Monkey Review Board” consisting of Megan Sweeters, Traci Tenhulzen and Tim Leahy. Members were chosen to share how they would help in efforts for the BBRC’s upcoming 10k Run.
- Girish Bhatia mentioned how he would include information in his company’s newsletter.
- Bob Holert got a friend to sponsor at the $2,500 level, and worked with another to get 25 volunteers for race day.
- Kim Shrader made a personal donation and located a team of up to 30 volunteers (of whom 25 are committed).
The Monkey Review Board hooted and hollered their approval for these efforts! President Paul was asked how he would help and offered only excuses. He was admonished by the Monkey Review Board (including Tim Leahy between bites of a banana) and forced to sign up for the race on the spot.
President Paul encouraged people to sign up for the district conference. Mike Ralph mentioned there would be a golf tournament Friday May 29th. Information is on the BBRC website.
Sergeant at Arms
Margie Burnett stood in for Ann Norman.
She mentioned Dean’s topic and asked a few in the crowd about their experiences with the substance. Who is telling the truth? Members who guessed incorrectly had to put money on the table.
President’s thought for the week
From noted thinker and morning host, Matt Lauer: Researchers have discovered that chocolate produces some of the same reactions in the brain as marijuana. The researchers also discovered other similarities between the two but can’t remember what they are.
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Leo's Big Night!
Our insanely talented exchange student, Leo Mazet-Roux, will be performing a monologue on Thursday, March 10, 7:30pm at the Seattle Repertory Theater. Come have some fun and cheer him on! The price is right — tickets are free! Think about this — can you imagine doing a monologue in French? Ooh la la!
Oh Yes We DID!!!
Due to Drinking Leprechauns filling the taverns on St. Patrick’s Day – which happens to fall on our beloved Third Thursday – we decided to embrace the Madness of March and MOVE 3rd Thursday to the FOURTH Thursday this month!!
We will be gathering on Thursday 3/24 (the FOURTH Thursday) at Bellevue Brewing Co to celebrate Friendship, Fellowship, Fun and March Madness (and yes… this time we’re talking NCAA Basketball!) 🙂
Need Some Help With Chores?
Who You Gonna Call…?
Our multi-talented exchange student, Leo, needs to raise $900 for his Western Safari trip and is ready, willing and able to work for it! Leo will mow your lawn, wash your car, do office work, chop wood, move furniture or babysit and you decide how much to pay. What a deal — it just doesn’t get any better than this!
Sammamish High School Needs Your Help!
I am posting the following announcement on behalf of Cassie Swoope, the host Mom for our exchange student, Leo. Thank you for supporting Sammamish High School. Cheers, Colleen
From: Sammamish Totems Enrichment Program Supporters S.T.E.P.S.
Re: Sammamish High School Spring Fundraiser (Non-Profit Tax ID: #91-1300361)
Dear Bellevue Breakfast Rotarians,
The S.T.E.P.S organization has been volunteering at Sammamish High School, raising money and granting funding to school programs for over 25 years.
Our organization is planning a fundraising auction event on March 26th. I am asking for donations to auction off at this event. Some items we can use are a well pet visit, round of golf, gift cards, bottle(s) of wine, and photography services. We are grateful for any donation you or your business are able to provide. Your donation is 100% tax deductible.
Thank you so much for your consideration.
Cassie Swoope, email@example.com
District Conference is THE Fellowship Event of the Year!