After years, court hands tax win to Michael Jackson heirs – Honolulu, Hawaii

Honolulu, Hawaii 2021-05-04 21:45:00 –

Los Angeles >> The U.S. Tax Court finds that the IRS has significantly inflated value and led to real estate at the time of the death of Michael Jackson’s assets and images, resulting in a major victory over Michael Jackson’s real estate in many years of battle. It was. The heir’s tax was too high.

The IRS values ​​the three controversial aspects of Jackson’s value, which died in 2009, at approximately $ 482 million. In his decision issued on Monday, Judge Mark Holmes said the number was $ 111 million. This is much closer to the real estate’s own estimate.

The real estate executor said it was a huge and obvious victory for Jackson’s children.

“We are delighted,” co-executor John Branca told The Associated Press today. “We are always trying to do the right thing. We tried to comply with the IRS rules and regulations from the beginning and relied on the best professionals possible. It’s a pity that I was forced to do so. “

The judge most opposed the IRS about the value of Jackson’s image and portrait. The IRS has set it at $ 161 million, but Holmes has determined it is only $ 4.15 million. Despite Jackson’s acquittal in a 2005 child sexual abuse trial, the allegations continued to plague him and sold out the dates of the world tour planned when Jackson died. Said it couldn’t find a sponsor or product partner.

“The fact that he didn’t get a penny from his image and portrait in 2006, 2007, or 2008 shows the effect that those claims had until his death,” Holmes said. Written in a vast 271 page decision to track, fame and finances throughout most of his life.

After a 2013 tax audit on real estate whose heirs are Jackson’s mother and three children, the tax dispute led to a claim of about $ 700 million, of which about $ 200 million was an underpayment fine.

The new tax bill will now be calculated using Holmes figures and will no longer include penalties.

It was also disputed that Jackson had a 50% stake in Sony / ATV Music Publishing. This is a catalog containing 175 Beatles songs. And his interest in another catalog that includes the songs he wrote.

IRS experts have set these assets at a total of approximately $ 320 million. The judge found that Jackson’s debt combined was worth only $ 107 million at the time of his death.

The long-awaited ruling is one of the few controversies still floating in Jackson’s estate almost 12 years after his unexpected death on June 25, 2009, after the lethal dose of the anesthetic propofol. Resolve one.

The other is choreographer Wade Robson, one of the two men in the 2019 documentary Dating to Neverland, who claimed that Jackson had been sexually abused as a child a week ago. Was resolved when he dismissed the proceedings filed by. A similar proceeding by another man, James Safechuck, who was featured in the documentary, was dismissed in October. A male lawyer called the decision a dangerous precedent for protecting children and said he would appeal it.

With years of controversy resolved and the pandemic delaying the release of the project, estate leaders feel they are in the right place to start promoting Jackson’s legacy again.

“We are at an absolute turning point,” Blanca said. “People may have noticed that Michael wasn’t guilty and couldn’t protect himself. A great Broadway play is coming. The Cirque du Soleil show is about to resume and how many That surprise is coming. “

The judge pointed out the great success that real estate has seen since Jackson’s death, through such shows, hit concert movies, and several strategic decisions to sell assets.

But the IRS doesn’t just consider the situation at the moment of Jackson’s death, when things got pretty tough after years of reckless spending from Jackson, which became less popular, poorly managed, and so on. , He said, seems to weave those successes into the decision.

The judge ridiculed Jackson’s initial rating for images and portraits for only $ 2,000, but the frequently used 20-year-old price for “King of Pop, one of the most famous celebrities in the world.” He said he was marketing at. Honda Civic. “

After years, court hands tax win to Michael Jackson heirs Source link After years, court hands tax win to Michael Jackson heirs

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