Harlem Rapper and CEO Jim Jones may be successful in his music career, but don't let this man come near your taxes. I found the following information in an April 2005 issue of Vibe Magazine.
Write that dirt off your shoulder
"Everything you do when you're in music is a write-off. My whole lifestyle is hop hop. Everything- my toothbrush is hip hop, my toothpaste. I gotta brush my teeth thoroughly before I go in the booth and do my record- we writing that off."
The Golden Rule for deducting business expenses is that the expense is "Ordinary and Necessary". You have to brush your teeth no matter what, so it it a business expense? No. And don't even think of deducting your fancy shampoo, gel, or hairspray, either.
"Yeah, we just writing sh*it off, you dig? My clothes, my cars."
You won't get empathy from the IRS when you try to write off expensive clothes and cars. You'll get an Audit.
My Accountant Handles That
"I don't even know what a W-2 look like, a tax ID number- I don't know what none of that sh*t is."
And you're giving me tax advice? Rapper Young Buck is dealing with a 300K Tax Debt
because he thought he accountant was handling his tax issues and didn't bother to keep tabs. Remember, if your accountant messes up it will be your tax debt. Take responsibility and check on your tax filings.
Make Crime Pay
"You gotta love the white people that do white-collar crime. They steal about $800 million, don't pay no taxes on it, do a bit for tax evasion, and come back home and buy a yacht when they get out...That's the type of time I want to do. If you gonna turn me into a billionaire and tell me I gotta do a bid for six months, I'm there.Where do I sign up?"
Or you'll emerge from jail after several years completely broke after your back taxes and multiple fines have been paid off.
F- The Man...I'm The Man
"I gotta give 50 percent to the government, and they say they're using it fro schools and welfare and all that stuff? I ain't with that sh*t man. I want my money. F- taxes- I want mine."
Too bad. Quit the whining and pay up or you'll end up paying more from jail. The choice is yours.
The Real Lesson: History has proven that you shouldn't take a hip hop star's tax advice. Or any celebrity's tax advice, for that matter. The only easy way out with taxes is to pay what you owe on time and in full.