Nicolas Cage: A tale of multiple foreclosures

Think you have issues with the Internal Revenue Service? Consider Nicolas Cage. By the latest count, he owes Uncle Sam approximately $14 million in back taxes relating to income from 2002, 2003, 2004, and 2007.

The actor just recently made a payment of $360,545. At least he’s trying.
 
Meanwhile, he is suing his former business manager, Samuel Levin, for $20 million. Cage claims got him into this mess. The lawsuit states that Levin "lined his pockets with several million dollars in business management fees while sending Cage down a path toward financial ruin."
 
Levin, who is countersuing, asserts that he tried to warn Cage about the dangers of his “compulsive, destructive spending,” and encouraged him to sell off 12 automobiles and a $1.6 million comic book collection.
 
Whatever you think of this guy’s financial woes, it seems like he can’t catch a break.
 
Last month, he saw the close of escrow on his beloved Bel Air home that was sold at auction to an unnamed limited liability company. The 1940s Tudor mansion once belonged to Dean Martin and Tom Jones. Cage put it on the market in 2007 for $37 million.
 
The house did not sell and, by 2010, it was burdened by loans from six different lenders totaling $18 million. The home eventually sold last July for $10.5 million. Cage purchased the property in 1998 for $6.5 million.
 
Real estate agent Bret Parsons told reporters at realestatechannel.com that the house has lots of mounted toy trains and other oddities. He described the interior of the house as “frat house bordello.”
 
About a year ago, the actor’s 14,300-square-foot Las Vegas home went into foreclosure. Cage bought the house in 2006 for $8.5 million. It boasted a 16-car subterranean garage, a theater, and an elevator. According to reports, the foreclosure sale brought nearly $5 million.
 
In July of 2009, Cage lost his two New Orleans homes, worth a total of more than $6.8 million, to foreclosure auctions, according to money.cnn.com. The New Orleans civil sheriff reported that Cage owed the City of New Orleans $151,730 in real estate taxes, and mortgage payments of $5.5 million. The only bids came from a bank.
 
Regions Bank of Alabama bought Cage’s property at 1140 Royal Street in the French Quarter for $2.3 million. The property appraised at $3.5 million. Regions also purchased Cage’s other home, located at 2523 Prytania St., for $2.2 million. It is reportedly worth $3.3 million.
 
Also, Cage recently sold his mansion in Bath, England, as well as a castle in Bavaria and his New York apartment.
 
It’s difficult to feel sorry for a guy who was paid enough to generate a tax bill of $14 million. Clearly, the income side of the equation is not the issue. Forbes listed him as one of the 100 most powerful celebrities, and reported that he was paid $40 million between June 2008 and June 2009. Declining real estate values didn’t help, but they probably brought to light Cage’s uncontrolled spending.
 

Related articles:

You may like these other stories...

The law makes it difficult for itemizers to deduct medical expenses. To reap any write-off, you must pay bills that aren't covered by insurance, reimbursed by employers or otherwise satisfied by, for example, a company-...
Drug patents held overseas can pare makers’ tax billsAs the Obama administration tries to stop companies from avoiding taxes by moving their headquarters overseas, the makers of some of the world’s most lucrative...
Starting in October, the IRS will send warning letters to tax return preparers who appear not to be complying with Earned Income Tax Credit (EITC) due diligence requirements.Section 6695(g) of the Internal Revenue Code...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.