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Thursday, February 25, 2010

Tax Dodgers: L.A. Owners Earned $108m, Paid $0 Tax

Dodgers An interesting tidbit has emerged in the high-profile divorce of the owners of the Los Angeles Dodgers: Frank and Jamie McCourt earned $108 million from 2004-2009 and paid zero federal and California income taxes.

(Hat Tip: Micah Burch, Pete Wentz.)

http://taxprof.typepad.com/taxprof_blog/2010/02/tax-dodger-la-.html

Celebrity Tax Lore, Tax | Permalink

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Comments

It looks legal to me. It's not like Geithner or Rangel prepared their tax returns. If journalists and others on the left have wealth envy and hate taxpayers who use loss carryforwards, then they can fly planes into mansions.

Posted by: Woody | Feb 25, 2010 6:27:34 AM

This points up to the need for the IRS to increase its audit resources, especially for high net worth companies and individuals. In this case, the IRS should take a look at the depreciation items and the alleged net operating loss carryforwards.

Posted by: Anonymous | Feb 25, 2010 7:01:11 AM

What a scandal, they used depreciation deductions, as provided by statute to generate NOL's, and they used assets to borrow money. Somebody call the cops.

Posted by: Dave | Feb 27, 2010 3:19:30 AM

So if i'm reading that mostly right, they earned $0 taxable income from the time the losses first started through 2009 and paid zero federal and California income taxes? That's just not fair! They should have to pay at least 90% tax on that $0! I'm outraged!!!

Not only that, but in 2008, the NOL went from $109mil to $135mil yet one of his partnerships paid him $23mil! Well it definitely stands to reason that if one partnership paid him $23mil, then it must have made at least $23mil in taxable income that year because there is absolutely no other way that could happen. And if one partnership made $23mil, then there's no possible way any other business venture could have lost money!

Whoever wrote that first article should be fired.

Posted by: Joe C. | Mar 1, 2010 11:46:08 AM