Thursday, 19 April 2012

Young Buck's Tax Problem

I sent this NPR story to my tax students to both demonstrate that what they are learning has real world relevance and to remind them that they know why Young Buck can't deduct the cost of his watches.
Even though they are quite the watches (many NSFW).

From the story:
"When IRS agents raided the house of rapper Young Buck, they seized all his things: his white leather dining chairs, his watches, his craps table, his tattoo kit. Even his refrigerator. The Nashville artist, who was once part of 50 Cent's G-Unit, owed hundreds of thousands of dollars in back taxes.
... if you're an entertainer, what qualifies as a business expense can seem really murky. Your whole lifestyle is not tax deductible.   Madison has tried to deduct watches, arguing that it's a necessary business expense for his client to have a certain look. The CPAs at his company threw it back."

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