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Nicolas Cage Owes Taxes On Extravagant Gifts

| Filed under: Legal MattersNicolas Cage


Oh shiz. Guess it doesn't pay to be generous.

Nicolas Cage is being targeted by the IRS for not paying taxes on gifts he gave to people between 2004 and 2009.

According to federal docs, Nic handed out presents in an amount totalling to around $1.8 million, but he never paid taxes on them.

The docs claim that he owes almost $630k in taxes, especially in years 2004-2007, where he seemed to be the most generous.

Since his financial woes started a couple years ago, Mr. Claus Cage says that his business manager is responsible for his financial mistakes, which have resulted in "catastrophic losses."

It's awesome that you wanted to be so generous, Nic, but you still have to pay your taxes!

Think about adorable handmade gifts next time you want to give. Who wouldn't love a scarf knitted by Nicolas Cage?? Or perhaps a Color Me Mine mug?? Think about it.

[Image via WENN.]

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11 comments to “Nicolas Cage Owes Taxes On Extravagant Gifts”

  1. 1

    What kind of strange twisted laws do you have in the US of A?
    Having to pay taxes on something you… give?
    I really don't get it.

  2. 2

    This is lame. Why should Nic Cage have to pay taxes on gifts he's giving people? his money he has saved has already been taxed from his earnings, so shouldn't the people getting the gifts pay taxes on it, not Nic Cage? Why should nic cage have to be double taxed? Bizarre tax structure we have in this country.

  3. 3

    This is the kind of sloppy, unprofessional kind of postings on Perez…I'm starting to not have much respect for Perez. Are you absolutely SURE Perez that there are IRS rules that tax the person who gives the gift. My understanding is that US citizens are required to report and pay taxes on all the income they receive. Perhaps Mr. Cage's fault is that he didn't report these gifts….or rather he didn't send out proper paperwork (1099 form)? You look stupid, Perez….

  4. 4

    gifts of certain sizes are taxed. and those are the laws. whether you like the laws or not, you still have to pay your damn taxes. i'm sick of celebrities ignoring their tax liabilities.

  5. 5

    If Oprah gives you a car, or you win big bucks on Jeopardy, you have to pay taxes on your winnings. Perez is always tsk-tsking stars that get caught by the IRS. What about all the freebies you get, Pe? Do you declare their value?

  6. 6

    God Perez, you are such a condescending little bitch.

  7. 7

    If he deducted these "gifts" given under his self-proprietorship (for advancement, thanks, or schmoozing), that's not permitted under tax law. For instance, you can't just buy your agent a car and deduct it in its entirety as a business expense to lower your bracket, etc. Whatever taxes he avoided paying on the income will be due. This is common knowledge to the self-employed. Shady accountant.

  8. 8

    donors do not pay gift tax. recipients do. if nic cage tries to pay gift tax on a gift he GAVE, then the amount of the gift is increased by the amount of tax he has paid. under no circumstances would he be liable to pay gift tax on something he's given to someone else.

  9. 9

    also, things that you win on oprah or jeopardy are not gifts for tax purposes; they are income. gifts are entirely separate.

  10. 10

    Re: steelwool – I think what happened is that he deducted the gifts as business expenses (as I mentioned above). Deductions lower your taxable net income. Gifts are not deductions, unless made to a registered charity. He is liable to pay the taxes on the income he illegally deducted, not the gifts themselves.

  11. 11

    Re: steelwool – Actually (and unfortunately) he would. There are exclusions– tuition, medical bills, charity, or gifts to a spouse or political organization. Also up to $13,000 per calendar year, per person. Anything over that amount to one individual is subject to the gift tax. If Cage actually made gifts to people over $13,000 per, then he DOES have to pay the tax. The recipient can voluntarily pay, but the the giver is liable in the end. Check out the IRS website's Estate and Gift Tax section. Fair? No way. But how it is.