Even the Rich Get the IRS Unpaid Tax Blues: Nicholas Cage Edition
I think many people believe the rich do not struggle with unpaid taxes like us “regular folks”. That is not true as this blog post will show. Nicholas Cage earned $150 million at the height of his career and yet he ended up owing $12 million to the IRS around 2010. This blog post discusses how Nicholas Cage got into this mess and how through hard work he dug himself out of the hole he created.
When $150 Million in Earnings Does Not Prevent IRS Problems
Nicholas Cage was, and still is, a renowned and much beloved actor, known for his captivating performances in films such as “Leaving Las Vegas”, “Con-Air”, and “National Treasure.” During his career, Cage is estimated to have earned $150 million dollars, which afforded him a lifestyle most of us can only dream of.
Behind the facade of glamour and luxury, however, a dark storm was brewing. Cage developed a taste for the finer things in life, and his extravagant spending knew no bounds. He splurged on a private island, a fleet of luxury cars, multiple real estate properties, and a huge collection of exotic pets and rare artifacts. As the saying goes, beware to not fly too close to the sun…
Here are just some of the luxury or extravagant purchases Cage is alleged to have acquired:
- 15 properties, including a home in Newport Beach CA, a countryside estate in Newport RI, and a home in Las Vegas, NV
- The infamous LaLaurie mansion in New Orleans, reputed to be a true haunted house
- Two castles in Europe
- An island in the Bahamas
- His own pyramid burial tomb, 9 feet tall
- A collection of shrunken pygmy heads
- The former Shah of Iran’s Lamborghini
- A pet octopus
- Action Comics No. 1 (the first appearance of Superman)
- A dinosaur skull (which later needed to return as it was stolen from Mongolia
Fall from Grace
Ultimately, Cage’s high-flying lifestyle led him to the point of financial ruin. His opulent spending habits left him without money to pay the IRS when he was suddenly faced with a staggering tax debt to the IRS.
As he tells it, he had invested heavily in real estate and when his IRS problems arose it came during the housing crisis of 2008-2009, burdening him with numerous debts and few liquid assets to pay off his tax debts.
As he tells it, he had invested heavily in real estate and when his IRS problems arose it came during the housing crisis of 2008-2009, burdening him with numerous debts and few liquid assets to pay off his tax debts. Cage also accused his business manager and accountant, Samuel Levin, for mismanaging his money. This lawsuit was ultimately settled confidentially so it is hard to say if this was accurate or not.
Regardless of the reason for his troubles, Cage’s career began a downward trajectory. The once beloved actor became toxic to Hollywood and roles for him dried up, now that his dirty laundry was waving in the open for all to see.
Recovery and Rebirth
Cage, whatever his faults, did not give up. Facing his problems head on, Cage began to sell off some of his extravagant possessions, real estate holdings, and rare memorabilia, to pay off his IRS tax debt and regain control of his financial situation.
Cage said this about the roles he took during this difficult time in his life, “Work was always my guardian angel. It may not have been blue-chip, but it was still work. Even if the movie ultimately is crummy … I’m not phoning it in. I care, every time.”
I know it must not have been easy. Having seen a few of his recent films I can tell you personally that no matter how the movie did in the box office, Cage seemed to be giving it 110% – no matter how hokey. There is a lesson in his story for everyone when faced with what appears to be an insurmountable problem. Never give up, never surrender.
Summary
Rich or poor, famous or infamous, we all can suffer our own IRS nightmare. Nicholas Cage is just one of many taxpayers who found himself on the wrong side of the IRS. Thankfully he worked hard and never let his diminished circumstances hold him back. My hats off to you sir.
James D. Wade, Esq.
Beacon Tax Advocates, LLC
57 Portland Road, Ste. 3
Kennebunk, ME 04043
207-502-7181
jwade@beacontaxadvocates.com
www.beacontaxadvocates.com