After michael jackson Died in 2009At the age of fifty, his property executor began to underpin the volatile finances of the former King of Pop, settled debt and launched new entertainment and commodity trading. Over time, real estate remained strong, debt declining, and millions of dollars in revenue.
However, there was another problem that took more than seven years to file a proceeding. In Jackson’s tax bill with the Internal Revenue Service, the government and real estate had very different views on the value of Jackson’s name and portrait when he died.
The IRS considered it worth $ 161 million. Real estate cost it only $ 2,105 — Jackson’s reputation after years of ridiculous reports of his eccentric lifestyle and years of ridiculous reports of a widely reported trial of child sexual abuse charges acquitted by Jackson Claimed to have been tattered at the end of his life.
On Monday, Judge Mark V. Holmes of the U.S. Tax Court said Jackson’s name and portrait were worth $ 4.2 million in a carefully watched case that could affect the estate of other celebrities. Judged and rejected many of the IRS’s claims. This decision will significantly reduce the tax burden on real estate from the government’s initial assessment.
The IRS believed that real estate had a tax obligation of just under $ 500 million and could pay an additional $ 200 million in fines.
At the peak of his career, Jackson was one of the most famous figures on the planet and had some of the most popular records ever released. And since his death, he has been one of the most earning celebrities in the world.Last year, Forbes estimated and earned his fortune $ 48 million..
But the tax proceedings turned on the value of the public image of Jackson’s death. His reputation has been severely damaged, and since 1993 Judge Holmes has stated that Jackson has had no approvals or merchandise unrelated to music tours or albums.
Still, the judge said the $ 2,105 real estate quote was too low, and the real estate “valued the image and portrait of King of Pop, one of the most famous celebrities in the world, at the frequently used 20 prices. I have decided. 1 year old Honda Civic “(with footnote quote to used car price guide).
Judge Holmes in a 271 page decision dotted with literary references to Hemingway and Plutarch — OK For his clear and sometimes humorous style summarizing dense tax cases — summarizing Jackson’s life, public reputation and financial transition.
“We make no particular judgment as to what Jackson has done or is alleged to have done,” the judge said.
Judge Holmes also determined the value of the other two assets. Like Jackson’s share of Sony / ATV Music Publishing, which controls the copyright of millions of songs, including most of the Beatles catalog, and others who acquired Jackson’s own songs.
Real estate claimed that these assets, along with Jackson’s name and portrait, were worth a total of $ 5.3 million. Judge Holmes has determined that their total amount is $ 111.5 million. (In 2016, Sony / ATV (now known as Sony Music Publishing) agreed to pay Jackson’s real estate $ 750 million To buy a share of the catalog. )
The Jackson case has been carefully watched as a guide to how celebrity real estate is valued and their tax obligations. Among the major real estate that still have major tax issues before the IRS are Prince and Aretha Franklin real estate.
In a statement, Jackson Branca and John McClane, co-executors of Jackson Real Estate, called the decision “a huge and obvious victory for Michael Jackson’s children.”
“Michael’s property was almost unfair by the government’s valuation of Michael’s property on the day he died, and would have imposed a repressive tax obligation of over $ 700 million on his heirs. We’ve maintained it for 12 years, “said Blanca and McLean. .. “We disagree with some of the decisions, but it will clarify how unreasonable the IRS’s assessment was and provide a way to finally resolve the case in a fair and just manner. believe.”
The IRS did not immediately respond to a request for comment on Monday night.
Michael Jackson Real Estate Wins Tax Judge Judgment
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