Strip Club Tips Rain Tax Deductions for Rapper
by Terri Eyden on
By Teresa Ambord
Canadian Rapper Drake (real name Aubrey Drake Graham) may have found an interesting loophole he believes will allow him a hefty deduction for tips at a strip club. That includes $50,000 in what he called "making it rain" money he spent at the Cameo Club in Charlotte, North Carolina. "Making it rain" is when strip club patrons shower dancers with tips by tossing fistfuls of dollars in the air to encourage them to do what they do.
TMZ recently posted pictures of Drake, with fifty grand strewn around on the dance floor at the feet of strippers. According to reporters, he entered the club with a cardboard box filled with bricks of one dollar bills totaling $50,000 intending to tip the dancers. Fellow rapper, Bleu Davinci was there too, with another $25,000 in "rain." The two men, along with other rappers, Jim Jones, Bizzy Bone, and The Game, say they plan to deduct all that money when they file their tax returns.
Drake says that as a rapper he is entitled to claim stripper tips as a business expense. Here is the justification, as defined by TMZ. TMZ reporters are arguably not tax experts, however, here goes. TMZ sources state there are two possible ways rappers could deduct strip club tips as a deductible expense:
- Entertainment expenses. These costs could be deducted if the rapper can show that he or she is entertaining a client, customer, or employees in a fashion that isn't "lavish or extravagant." Fifty thousand might be a bit over that line, but a smaller amount . . . possibly.
- Advertising or publicity expenses. If they're "reasonable" and directly related to the rapper's business, it could fly, says TMZ. Rappers claim that "making it rain" is necessary to build an image that makes people want to buy their music.
TMZ admits it would be hard for rappers to prove to the IRS how much they stuck in a stripper's G-string. But these rappers just might have some kind of deduction.
Here are some quotes TMZ gleaned from various rappers as to the business purpose of their "expenses":
- The Game said, "Making it rain is good for business and promotion that comes with the lifestyle of a rapper."
- Bizzy Bone said, "I'm giving charity to females who need their light bills paid. So, of course, that's a write-off. You write off your kids, don't you?"
- Daz Dillinger said, "Hell yeah. I'm going to see about getting my taxes fixed as soon as possible."
- And Lil' Flip claims he has successfully taken this deduction in the past.
Hmmm . . . one wonders how this item was listed on his tax form. Plus, time and tax audits may shed new light on this "success." The IRS has eyes everywhere, including TMZ reports. So it's possible the taxman may take another look at past tax returns of those in the business of rapping.
We'll be watching.
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