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Strip Club Tips Rain Tax Deductions for Rapper

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Mar 14th 2013
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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: 

  1. 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.
  2. 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. 

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