Thursday, October 8, 2015

Jay Z And Beyonce Engaging In Mansion Rental Scheme To Defraud The IRS And U.S. Taxpayers

Beyonce to Jay Z: you know she's gonna snitch on us to the IRS, we shouldn't have stolen all that stuff from her

As covered in the column yesterday, rapper Jay Z and his wife, singer Beyonce, are renting another Holmby Hills mansion in Los Angeles, California for $150,000 per month, after being evicted from their previous rental last month, 6-months into a 1-year lease (Beyonce And Jay Z Throw Money Away Again Renting Another Mansion They Can't Afford). The couple were given an eviction notice ordering them to vacate within 60-days, as the home they wanted to buy, but lack the credit and funds to purchase and maintain, has been sold out from under them for $45,000,000.

Now the couple is unwisely renting another mansion for $150,000,000 per month, trying to live like Bill Gates (does) and Steve Jobs (did), men Jay Z laughably labeled his peers during interviews and in a distasteful rap song. Jay Z and Beyonce want the high life, but can't afford it at that level.

Leasing homes out of their price range and then billing it to the U.S. Internal Revenue Service as a business deduction, is essentially fraud. Jay Z and Beyonce are not really doing business in Los Angeles to constitute or qualify for such a write off and for a property far exceeding their actual homestead.

TMZ already let slip they are living there. Most of the couple's business and their office is in New York, where they have a cheaper condo and far less expensive home in New Jersey. The IRS is getting burned by the couple's conduct.

Side Bar: under IRS rules, if you pay taxes on money derived from copyright infringement it is money laundering (and a felony if the sum is greater than $500). If you don't pay taxes on money derived from copyright infringement it is tax evasion (and a felony if the sum is greater than $500).