Earlier this week, a charity auction to have lunch with Warren Buffett resulted in a winning bid of $3,300,100. The winning bidder, who has chosen to remain anonymous, won the right to eat with the billionaire at Smith & Wollensky steakhouse in New York City. The annual lunch with Buffett benefits Glide Foundation, which offers food, shelter, health care and other services to homeless and low-income people in San Francisco.
When you have the means to spend $3 million on lunch, you might not be looking for a tax break. But in this case, the bidder may qualify for one. Here's why it could make good tax sense this year:
Mark Holmes writes pithy tales of failed marriages and booming businesses, weaving in F. Scott Fitzgerald, historical digressions and groan-aloud puns.
Now he’s working on a much-anticipated thriller (get it?) about the late pop superstar Michael Jackson.
Mr. Holmes is no best-selling author. In fact, his work is free. Mr. Holmes is a federal judge known for the clear, colloquial writing style he brings to arcane rulings on the U.S. Tax Court.
He’s handling the final phases of the hugely complicated court case stemming from Mr. Jackson’s estate-tax return. An unusual combination of music fans and tax nerds is anticipating the end of the five-year court battle, and Mr. Holmes is poised to apply his distinctive voice to one of the most recognizable voices of the 20th century.
At first it appeared that Michael Cohen had paid off Stormy Daniels with his own money, and without President Trump's knowledge. Then, Rudy Giuliani said President Trump had reimbursed him. Then, there was some reshuffling about who knew what when. There were some awkward questions about whether President Trump knew of the deal at the time, or only learned of it later. The timing and mechanics of the reimbursement seem a little confused. From a tax viewpoint—which surely isn't the most important part of this story--many of these details may not matter. Even so, the tax issues are an interesting side show. Just about every kind of payment has tax consequences, to both the recipient and to the one who paid the money.
There's no question that Stormy Daniels would have to pay tax on the $130,000 payment. Settlement money is almost always taxable to the recipient, unless it is for personal physical injuries or physical sickness. That is one of the rules about taxes on legal settlements. But on the payer side of the equation, it isn't so clear whether someone paying her could deduct the payment, leaving aside the question of who effectively paid the money. Michael Cohen may have expected reimbursement at the time or only learned of the reimbursement later. Someone else was ultimately paying the bill.
Congratulations on finding your Prince Charming! I don’t want to be the bad fairy at the festivities, but we need to have a serious talk about taxes.
Meghan, I know you lived as a U.S. citizen in Canada and may be aware of tax issues faced by the seven million or so Americans living abroad. And I know you’re committed to Harry, because you’ve given up a lot since you two became serious, including your lucrative acting career and your lifestyle website.
But I don’t think you know the tax torment many American expats face when they marry non-U.S. citizens—as you’re about to do. Nearly every financial move they make, and other moves they don’t think of as financial, raises a U.S. tax issue.
The Tax Court issued no opinions last week, likely because it was holding its Judicial Conference at Northwestern School of Law in Chicago. Our colleagues over at Procedurally Taxing attended and blogged about it here. Les Book reports (here) that the last session of the Conference was looking forward to the future of the Tax Court.
Future, Schmoocher. My love of history keeps my head buried firmly in the sands of the past. For not only is the past prologue, it’s also epilogue. That’s the lesson I take away from this Tax Court classic: Harold Jenkins v. Commissioner, T.C. Memo. 1983-667, a case I teach as an epilogue to the Supreme Court's classic Welch v. Helvering, 290 U.S. 111 (1933).The Jenkins case deserves your attention not only because of its lesson about the difference between business and personal deductions but also because of the poetry (?) it inspired both from Tax Court Judge Leo H. Irwin and from the IRS Office of Chief Counsel
Swag bags are a big perk of going to the Oscars. But movie stars who accept the goodies could owe a hefty tax bill. ...
For top-earning movie stars, the result could be a tax bill that eats up roughly half the value of the bag. While the recent Tax Cuts and Jobs Act lowered the top federal income tax rate, it still amounts to a hefty 37%. There’s also state income tax, which in California tops out 13.3%. In other words, movie stars who collect a gift bag worth $100,000 could end up owing $50,300 in state and federal taxes. ...
If his life had unfolded as he planned, Cris Collinsworth wouldn’t be spending this week in the Twin Cities, studying video of the Patriots and Eagles. He’d be in an office, poring over the details of the new U.S. tax code.
The former Bengals receiver began attending law school while still playing in Cincinnati [J.D. 1991, University of Cincinnati College of Law]. Armed with an accounting degree — and an affinity for business and tax law — Collinsworth saw his future in the legal world, even after a radio station asked him to be a fill-in host. ...
Collinsworth’s secondary mission is to share the “terrific story lines’’ of Super Bowl LII.
As he clicked off the list — Eagles quarterback Nick Foles’ comeback! LeGarrette Blount and Chris Long winning rings with the Patriots last year, now playing for Philly! — Collinsworth’s voice bloomed with excitement, in a way it probably wouldn’t have if he were discussing tax law.
“Believe me, I’m not longing for the days when I was going to become a lawyer,’’ he said, laughing. “Especially come tax time.’’
For such readers, I regret that you have not read this incredible fantasy adventure series. Not only because it’s good, but because references such as mine abound. Me nem nesa. A particularly amusing and creative spin comes from the otherwise staid ABA Section on Taxation. Each year the Tax Section puts out a “Tax Challenge” for both J.D. students and LL.M. students. This year’s Tax Challenge looks at some tax implications from GOT. Here’s how it starts:
Someone — and absolutely no one involved seems ready to say who — came up with an idea in 2012 for a patron to purchase 2,070 photos by the American portrait photographer Annie Leibovitz and then donate them to a museum in Canada.
For Ms. Leibovitz, who had a financial crisis several years earlier, the transaction meant she earned several million dollars.
And the donor, a Deloitte Canada partner who said he had bought the collection to honor his mother’s memory, stood to qualify for a generous tax deduction and recognition as an arts patron.
Four years later, though, a Canadian government panel that must sign off on the deduction is still balking at approving it, partly because the panel won’t accept a $20 million valuation for a collection that the donor purchased for just $4.75 million.
Billionaire Stephen Ross, owner of the Miami Dolphins, who thanks to a $200 million donation (largest in the history of the school) was described as Leader, Visionary, Philanthropist, Wolverine by the Universtiy of Michigan. ... Mr. Ross got his start in real estate based on his knowledge of federal tax garnered as a tax attorney for Coopers and Lybrand. ... I have to wonder whether the name of his flagship Related Companies is a tax geek joke.
The bare bones of the plan are that RERI, whose principal investor was Mr. Ross, bought an asset (call it "the thing") which it donated to the University of Michigan toward a $5 millon pledge that Mr. Ross had made. Under the gift agreement UM had to hold onto "the thing" for two years, then sell it. The amount that UM received would be credited to Mr. Ross's pledge. Round numbers RERI acquired "the thing" for $3 million. When it came time to sell it UM had it appraised at $6 million. UM sold it to a partnership for $2 million under pressure from Mr. Ross who threatened to count that amount towards his pledge, if they ended up getting less. How large was the charitable deduction taken by RERI, of which Ross was the principal investor? That would be $33,019,000.
Mr. Ross is a prominent philanthropist. It is tough to characterize this particular transaction as philanthropic as the claimed tax savings dwarf the amount out of pocket or the amount netted by the University of Michigan. You have to wonder to what extent University development officers knew what was going on. Was University of Michigan seeking charitable donations or renting its brand to a tax avoidance scheme?
The Boston Bruins ruled the world of professional hockey six years ago when they last won the Stanley Cup. But the team’s victory last week over the Internal Revenue Service will likely resonate far beyond the rink.
In Jacobs v. Commissioner, [148 T.C. No. 24 (June 26, 2017),] the owners of the National Hockey League’s Bruins argued the team should be able to deduct 100% of the cost of certain meals they provided to players and staff. Under current law, only 50% of the cost of many business meals is tax-deductible.
The hypocrisy really gets ratcheted up with John Oliver, the No. 1 darling to so many liberal anti-Trumpies, who regularly attacks GOP tax schemes as giveaways to the rich and detrimental to the poor. ...
For years, Oliver has criticized the estate tax, which opponents, in a smart linguistic move dreamed up by Frank Luntz, long ago labeled the “death tax”; and the tax code’s raft of loopholes that benefit special interests he identified as oil companies and hedge fund managers. Oliver even briefly established the bogus Our Lady of Perpetual Exemption to draw attention to tax-exempt status granted to churches and charities.
Back in July 2014, in an episode in which he lamented the Wealth Gap in America” (which has resulted in the richest one percent of Americans controlling 20 percent of annual income), Oliver said, “At this point the rich are just running up the score…What sets America apart is that we are actively introducing policies that disproportionately benefit the wealthy,” such as tax cuts and loopholes like trusts.
So it’s a little surprising to discover that just months before, Oliver had a tax attorney set up two revocable trusts, one for him and one for his wife, to hide the couple’s purchase of a $9.5 million Manhattan penthouse. Then he used a tax loophole created by Donald Trump himself back in the 1970s, when the current president was merely a prominent New York real estate developer and aspiring celebrity author.
Robots are taking human jobs. But Bill Gates believes that governments should tax companies’ use of them, as a way to at least temporarily slow the spread of automation and to fund other types of employment.
When pop star Michael Jackson died in 2009, weeks before a planned comeback tour, how much was the man in the mirror worth? The answer is far from black and white.
After coming to agreements on the value of some of the King of Pop’s more concrete assets in a legal fight that began four years ago, the estate’s executors are facing off with the Internal Revenue Service in U.S. Tax Court on Monday, primarily over the valuation of the singer’s name and likeness rights at the time of his death.
Depending on the outcome of the case, the estate could be on the hook for more than $500 million in taxes and $200 million in penalties, according to the IRS’s notice to the estate of its deficiency.
It's also almost tax time, and we should all remember who gets a piece of every bet: the IRS. The IRS gets a piece, whether sports betting, rolling the dice, playing cards, or betting on the ponies. All gambling winnings are taxable income in the eyes of the IRS. And the IRS doesn't allow you to automatically reduce your winnings by your losses either. Here are 7 tips for casual gamblers.
This week, Joe Kristan (CPA & Shareholder, Roth & Company (Des Moines, Iowa); Editor, Tax Update Blog) reminisces about a 1970 episode of The Mary Tyler Moor Show involving an IRS audit.
The bewitching glamor of the 1970s IRS.
The Mary Tyler Moore Show was a Saturday night childhood staple in the days of three TV channels. Through the miracle of Amazon, I revisited my 10-year-old viewing habits by downloading an episode from Season 1, 1040 or Fight, in which the heroine gets examined by the IRS.
The fictional tax world of 1970 is a fabulous place. For example, the IRS does evening house calls, scheduling the exam in Mary’s bachelorette pad at 8:03 p.m. The IRS agent shows up right on time with his calculator.
Over the past decade, Saban has created a modern football dynasty at Alabama, with four national titles in seven years and another possibly in the offing as it gears up for the annual showdown with archrival Auburn.
With considerably less fanfare, Saban has also built a business empire off the field, a collection of investments and projects that roughly traces the path of his 40-year career: A strip mall outside East Lansing, Mich. Apartment complexes around Houston, Texas. A pair of small apartment buildings in Baton Rouge, La. An upscale residential development in Tuscaloosa, Ala. And a growing collection of Mercedes-Benz dealerships. ... On a state disclosure form filed in May 2016, Saban listed 23 entities, some with names like Blitzmore LLC and First Down LLC, in which he or his wife, Terry—a licensed real estate professional—hold 5% or more of the stock, or serve as officers. ...
The art world feud between the actor Alec Baldwin and the gallery owner Mary Boone took another turn on Thursday when lawyers for Ms. Boone filed a motion in New York State Supreme Court in Manhattan accusing Mr. Baldwin of committing fraud by failing to pay sales tax on a painting he bought from her six years ago.
The filing comes just over a month after Mr. Baldwin sued Ms. Boone, asserting she had defrauded him in 2010 by promising him a painting, “Sea and Mirror,” by the artist Ross Bleckner, for which he had paid $190,000, but supplying him another, similar Bleckner painting, also called “Sea and Mirror.” ...
In the motion to dismiss Mr. Baldwin’s suit, her lawyer said that when Mr. Baldwin bought the Bleckner painting in 2010, the actor left instructions to deliver it directly to his home in California, and then almost immediately after it arrived on the West Coast, had the painting shipped back to his apartment in New York.
Chicagoans are abuzz with excitement over the possibility of a Cubs championship, which would be the first since 1908, and the legal academy is not immune. [David] Rudstein [(Chicago-Kent)] is just one of many professors at the city’s six law schools who are following the team with either sense of unbridled optimism or dread that it could fall apart at any moment. These are the Cubs, after all. ...
Ann Lousin, a professor at The John Marshall Law School in Chicago, had the unenviable task of teaching her three-hour sales transactions class during the first night of the World Series. Students still showed up, but by hour two she noticed pleading looks in their eyes. “You try to teach the Uniform Commercial Code while the World Series is going on,” she said the following morning. “It’s brutal.”
TaxProf Blog op-ed: McGonagall Replies to Snape on Taxes, by Alice G. Abreu (Temple):
Because Professor Minerva McGonagall is my favorite member of the Hogwarts faculty, particularly as played by the inimitable Dame Maggie Smith, and because she and Severus Snape led rival houses, here’s how I think she would reply to Adam Chodorow’s reimagined Snape, who as a TaxProf warns his students on the first day of class that because there is “little foolish argument by analogy here, many of you will hardly believe this is law.”
Humph . . . It’s high time you learned to be proud of the tax law you’ve got, rather than the one you think you ought to have.
Our rival houses are the House of Tax Exceptionalism and the House of Tax as Everylaw. Snape as a TaxProf may wish that the tax law were exceptional, different from other fields of law in such fundamental ways that it is perhaps not law at all, but that is not the tax law we actually have.
TaxProf Blog op-ed: Snape on Taxes, by Adam Chodorow (Arizona State):
Every fall, as I prepare to teach again after a 3-month hiatus, I am reminded of a scene from the first Harry Potter book. The students, some bright-eyed, others fearful, file into Professor Snape’s dungeon classroom for their first Potions class. Glaring out at his students, he introduces them to the subject he loves, but which he fears they will barely comprehend. The passage reads as follows:
You are here to learn the subtle science and exact art of potion-making,” he began. He spoke in barely more than a whisper, but they caught every word – like Professor McGonagall, Snape had the gift of keeping a class silent without effort. “As there is little foolish wand-waving here, many of you will hardly believe this is magic. I don’t expect you will really understand the beauty of the softly simmering cauldron with its shimmering fumes, the delicate power of liquids that creep through human veins, bewitching the mind, ensnaring the senses…I can teach you how to bottle fame, brew glory, even stopper death – if you aren’t as big a bunch of dunderheads as I usually have to teach.
What if Snape taught tax? Many of our students would likely equate the two subjects. Regardless, with apologies to J.K. Rowling, here’s what I imagine he would say:
A Fortune investigation into Gawker Media’s finances reveals that though [founder Nick] Denton is down, he is not out. As the company’s websites assailed tech giants like Alphabet, Apple, and Facebook for byzantine schemes meant to reduce their tax burden, Gawker Media quietly played the same game. Our investigation reveals that Denton is as much a creature of the tech industry as he is a critic—and that Gawker’s slippery but legal tactics may, in the end, help Denton survive Thiel’s crusade with funds to spare.
Attorney General Eric T. Schneiderman announced today a $4.28 million settlement with international art dealer Gagosian Gallery following an investigation into sales tax collection practices. Gagosian Gallery is a leading dealer of contemporary art, with galleries in New York City, Beverly Hills, San Francisco, London, Paris, Geneva, Rome, Athens and Hong Kong. Its owner, Laurence Gagosian, is a prominent figure in the contemporary art scene, and it is estimated to sell over one billion dollars of art annually. ...
The legal fallout stemming from Melvin Simon’s decision to unload his half of the Indiana Pacers to his brother Herb just a few months before his September 2009 death is getting crazier by the day.
Mel’s widow, Bren Simon, got the public spectacle rolling in March 2015 when she sued the IRS in an effort to overturn the agency’s determination that the terms of the deal were so tilted in Herb’s favor that Mel essentially gave him an $83 million gift.
That conclusion left Bren with a $21 million gift-tax bill, which she paid under protest but hopes to get refunded by winning the suit.
Did Donald Trump violate IRS rules, by using a charity's money to buy himself a signed football helmet?
Four years ago, at a charity fundraiser in Palm Beach, Donald Trump got into a bidding war at the evening's live auction. The items up for sale: A Denver Broncos helmet, autographed by then-star quarterback Tim Tebow, and a Tebow jersey.
Trump won, eventually, with a bid of $12,000. Afterward, he posed with the helmet. ... But Trump didn't actually pay with his own money. Instead, the Susan G. Komen organization — the breast-cancer nonprofit that hosted the party — got a $12,000 payment from another nonprofit, the Donald J. Trump Foundation.
NBA free agency kicked off at midnight. How important are state tax considerations to players in choosing which team to join? Kevin Durant reportedly is courting six suitors, two of whom are in states without an income tax: Miami and San Antonio (the others are Boston, Golden State, Los Angeles (Clippers) and Oklahoma City.) Given his recent tax troubles, Durant may be particularly sensitive to tax considerations in making his free agency decision. See Slam Online, The Influence of State Taxes on NBA Free Agency:
Modern athletes seem to be more financially literate and are aware of the so-called “Jock Tax” and state taxes. As such, more athletes are signing with teams that are located in states that don’t tax income, like the Miami Heat, the Houston Rockets and San Antonio Spurs.
Floyd Mayweather Jr. made it rain so hard at a Las Vegas strip club a couple years back that he thinks he deserves a tax break for it.
Tax documents obtained by the Daily Mail show that Mayweather’s company, Mayweather Promotions LLC, has sent Larry Flint’s Hustler Club a 1099 IRS form for more than $20,000 he spent on strippers on May 25, 2014. Apparently The Money Team believes the Hustler Club is responsible for paying taxes on the $15,000 in singles and additional $5,000 cash Floyd and his crew spent that night.
Not surprisingly, club owner Jason Mohney is furious. He says the Hustler Club didn’t receive a dime of the $20,323.18 and that it all went to the dancers, who are independent contractors.
A federal judge has ordered Texas entrepreneur Sam Wyly to pay $1.1 billion in taxes and penalties for committing tax fraud using offshore accounts, even though the former billionaire’s net worth has fallen to a fraction of that amount.
The payment demand from Judge Barbara Houser on Monday was made for federal taxes due as far back as 1992. In a court opinion filed last month, she admitted that the money “may now be more difficult for the government to collect given the passage of time and the dissipation of Sam’s wealth.”
In the beginning, Ken Ham made the Creation Museum in northern Kentucky. And he saw that it was good at spreading his belief that the Bible is a book of history, the universe is only 6,000 years old, and evolution is wrong and is leading to our moral downfall.
And Mr. Ham said, let us build a gargantuan Noah’s ark only 45 minutes away to draw millions more visitors. And let it be constructed by Amish woodworkers, and financed with donations, junk bonds and tax rebates from the state of Kentucky. And let it hold an animatronic Noah and lifelike models of some of the creatures that came on board two-by-two, such as bears, short-necked giraffes — and juvenile Tyrannosaurus rexes.
This is a tax case arising out of a criminal conviction for insider trading. Joseph P. Nacchio and Anne M. Esker (“Nacchio”) filed this action in the Court of Federal Claims seeking an income tax credit of $17,974,832 for taxes paid on trading profits of $44,632,464.38, which Nacchio was later ordered to forfeit to the United States following his conviction for insider trading with respect to those profits. The government opposed Nacchio’s request, contending that his forfeiture payment was a nondeductible penalty or fine and that he was estopped from seeking tax relief because of his criminal conviction. The parties filed cross-motions for summary judgment.
Alexander Hamilton introduced the idea of federal taxes. Broadway producers enjoying a record season buoyed by his namesake musical are lobbying Congress to limit what they owe.
The industry, which will celebrate its success tonight at the Tony Awards, is fighting to keep a provision that allows live-theater backers deductions in a show’s first year. That means they’d pay tax on income only after turning a profit. The provision passed in 2015, yet needs to be extended by Congress this year to survive.
In an industry where four of five performances close without recouping startup costs, producers say such a sweetener will keep the hits coming. While the provision was tacked onto a list of tax breaks last year at the behest of Sen. Chuck Schumer, D-N.Y., there’s no guarantee it will be continued, producers and their lobbyists say. Some lawmakers don’t like the idea. Nor do advocates of tax cuts, who say such breaks make it more difficult to reduce the burden on everyone else. ...
Prince's estate is getting hit with a hefty tax bill that could end up taking half of his estimated $250 million fortune – and force the early sale of some of the vast troves of unreleased music that the Purple One had locked up in his vault, the trustee for the estate revealed.
John Oliver is known for demystifying complicated issues to get his “Last Week Tonight” audience riled up. He’s explained major problems with credit reports and the bizarrely undemocratic side of primaries and caucuses. In that way, last night’s episode devoted to debt buyers wasn’t all that different. He started out, in his entertainingly enraged way, by explaining how banks sell debt to other business for pennies on the dollar. Those companies have little knowledge of those owing money, but they can be terrifyingly predatory, taking advantage of consumers’ fear of legal action. Some of these debts are erroneous; some are “zombie debts” that have already been paid. And yet, debt collectors will persist, even employing dirty tactics to get cash.
But Oliver did more than educate last night. He explained to his viewers that he undertook the surprisingly easy task of starting a debt buying company, Central Asset Recovery Professional, Inc. — “or CARP, for the bottom-feeding fish,” he explained. No sooner had he set up a CARP web site, but another debt buyer was offering to sell Oliver nearly $15 million worth of medical debt for less than $60,000.
So CARP bought the debt of nearly 9,000 people — just so Oliver could forgive it. According to the host, this is the largest one-time giveaway ever on television, beating out Oprah Winfrey’s famous “you get a car! You get a car!” episode, which cost that show $8 million.
(Click on YouTube button on bottom right to view video directly on YouTube to avoid interruption caused by blog's refresh rate. The most relevant discussion begins at 17:15.)
The heirs of late pop star Whitney Houston are now in Tax Court over what the Internal Revenue Service claims is owed in estate taxes.
In a May 23 petition, now sealed and first reported by Bloomberg, the Whitney Houston estate objected to the determination that $22.6 million has been underreported, which the IRS claims means that more than $11 million is owed, including $3 million in penalties.
Sir Winston Churchill was a serial tax avoider who exploited loopholes and faked his own retirement in collusion with the chairman of Inland Revenue, his biographer has claimed.
David Lough, a historian and author, said Churchill had learned to use Inland Revenue as a "beast who can be tamed and bent" after finding himself in financial difficulties.
Not only did the politician pretend to retire in order to halve his tax bill, the author claimed, he persuaded the Revenue's young chairman to help him figure out a way to save his earnings for himself. ...
Estate-tax attorneys for Prince, who died [April 21], must attempt to put a precise financial value on his name, image and likeness.
That Prince-ness could make him one of America’s top-earning deceased celebrities, and it may be one of his estate’s largest assets—subject to a 40% federal tax.
The Internal Revenue Service is used to putting price tags on tradeable assets and is well-trained in taking existing revenue streams and capitalizing them into a value. It is much trickier to divine the worth of a unique niche business—marketing Prince’s legacy—that doesn’t really exist yet.
Aby J. Rosen, the Manhattan real estate developer and art collector, is well known for exhibiting works from his collection at the landmark Seagram Building and at Lever House, both on Park Avenue, as well as at 530 Park Avenue, a 19-story residential condominium. He also has five pieces by Picasso in his Manhattan home, and a controversial, 33-foot-tall bronze sculpture of a pregnant woman with an exposed fetus on the grounds of his estate in Old Westbury, on Long Island.
That $2.5 million, 13-ton sculpture by Damien Hirst [right] is one of 200 artworks that have put Mr. Rosen at the center of another controversy — this one involving unpaid taxes.
The New York attorney general, Eric T. Schneiderman, announced a $7 million settlement with Mr. Rosen on Tuesday for failing to pay taxes on $80 million in artwork that he had bought or commissioned since 2002.
A legendary Irish gambler took a celebrity-obsessed American private equity honcho to the cleaners, winning over $17 million from him in the course of a 72-hour backgammon session.
Had he been Irish, Alec E. Gores, who nurtures friendship with celebrities such as Sylvester Stallone, Tobey Maguire, and Ben Affleck, and was caught up in the Anthony Pellicano wire-tapping scandal after he apparently set the private dick on his wife who was having an affair with his brother, might have known better than to get into a game of chance and skill with JP McManus. ...
McManus is famous for traveling with a portable backgammon set and, sources acquainted with him tell The Daily Beast, has been known to start games with strangers on airplanes in a (usually successful) attempt to win back his airfare.
But when he sat down with Gores, who is worth $2.1 billion, in November 2012 for what has been described as a “serious backgammon match” he walked away with enough to buy not a plane ticket but a private jet—his winnings were a stunning $17.4 million.
Prince died without a will, according to court documents filed by his sister, which may cause complications for his financial estate and musical legacy.
In probate documents filed on Tuesday with the court in Carver County, Minn., Tyka Nelson, 55, Prince’s sister, said that her brother died without a spouse, children or surviving parents, and that “I do not know of the existence of a will.” ...
In addition to Ms. Nelson, the document lists five half-siblings of Prince as interested parties: his half-brothers John Nelson, Alfred Jackson and Omar Baker, and his half-sisters Norrine and Sharon Nelson. According to Minnesota law, surviving half-siblings are treated the same as full siblings. ..
Of all the befuddling legal matters in the entertainment business, there's perhaps none that causes attorneys to scratch their heads like the battle between Michael Jackson and the Internal Revenue Service over what the late entertainer should be paying in estate taxes. In the years after his death in 2009 at age 50, Jackson has experienced a commercial rebirth thanks to the savvy executors who have managed his assets. The 2009 documentary This Is It grossed $261 million, a Cirque du Soleil tribute show packs in fans, and there have been albums, video games and other lucrative memorials. Now the IRS wants its share, claiming the value of Jackson's name and image upon death amounted to more than $434 million. The estate's own valuation? Just $2,105.
Q: What are the federal income tax consequences to a person who accepts a gift bag in recognition of involvement in an awards show? A: In general, the person has received taxable income equal to the fair market value of the bag and its contents and must report that amount on his or her federal income tax return. ...
Remember when Peyton Manning paid New Jersey nearly $47,000 in taxes two years ago on his Super Bowl earnings of $46,000? Manning has nothing on the state taxes facing Carolina Panthers quarterback Cam Newton for Super Bowl 50 in Santa Clara, Calif. Newton is looking at a tax bill more than twice as much, which will swallow up his entire Super Bowl paycheck, win or lose, thanks to California’s tops-in-the-nation tax rate of 13.3%. ...
If the Panthers win the Super Bowl, Newton will earn another $102,000 in playoff bonuses, but if they lose he will only net another $51,000. ... Win on Sunday, and Newton will pay California a total of $159,560 in taxes in 2016. Lose, and he will pay $159,200, based on an income reduction of $51,000.
David Bowie’s dying wish was to have his ashes scattered on Bali — in line with the island’s Buddhist customs — and his riches sprinkled on his wife and kids, according to his will filed Friday in Manhattan court. ...
Bowie also directed that his property and money be divided among his model wife Iman, his two children, Duncan Jones and Lexi Zahra Jones, a personal assistant and a former nanny.
The music icon was worth around $100 million when he died this month of cancer at 69, according to court papers.
Iman will receive roughly half of his fortune, plus the couple’s apartment on Lafayette Street in Manhattan. ...
By rock standards, David Bowie was a real tax oddity — because he was so savvy with his money.
This past year, much ado was made about the so-called “IRS-Gate” and concerns that the Obama administration may have used the agency to target Tea Party and other right wing groups. ... [W]hat often is not stated during the Martin Luther King Holiday weekend is that King, early in his leadership of the Southern Christian Leadership Conference (SCLC), was routinely subjected to IRS audits of his individual accounts, SCLC accounts as well as accounts of his lawyers, first starting during the administration of President Dwight Eisenhower and continuing through the Kennedy administration. ...
The Super Bowl 50 Host Committee — the organization charged with raising money to produce events around the Bay Area leading up to and including February’s big game — has already raised $50 million from leading Bay Area corporations.
But because the NFL requires its host committees to be structured as nonprofit organizations — claiming the same tax-exempt status that the National Football League enjoyed for decades — it doesn’t have to reveal its contributors or how much each donor gave.
That opacity is raising concerns in an era of “dark money,” where politicians use the tax code to hide contributions. Watchdog groups, which also question why wealthy professional sports leagues get to classify themselves as nonprofits, say any entity that’s raising and spending millions — with little transparency — needs to be monitored closely.