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August 28, 2014

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Tax troubles force Nicolas Cage into leaving Las Vegas

Actor owes $6.6 million in back taxes, other debts on Las Vegas mega mansion

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AP Photo

This Associated Press file photo shows Nicholas Cage in 2006. The star of the 1995 film “Leaving Las Vegas” is being forced to sell his Las Vegas mansion because of tax troubles.

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Nicolas Cage is “Leaving Las Vegas” once again, as tax troubles are forcing him to sell his sprawling Southern Nevada estate.

Cage is said to owe the IRS over $6.6 million in back taxes and other debts dating back to 2002.

The 45-year-old star reportedly owes a grand total of $6,617,550.84. The staggering figure is the combination of three older federal liens – $70,190.05 from 2002; $179,738.23 from 2003; and $110,617.56 in 2004 – and $6,257,005 in back taxes from 2007.

In addition to the IRS debts, East West Bank alleges Cage owes $2 million for a loan that was extended in August. It should me noted, however, that that claim is separate from the IRS filing.

Cage is now suing his former business manager of eight years, Samuel Levin, whom he says led him "down a path toward financial ruin."

The lawsuit, which was filed last month, states, "Levin placed Cage in numerous highly speculative and risky real estate investments, resulting in Cage suffering catastrophic losses. … He is now forced to sell major assets and investments at a significant loss and is faced with huge tax liabilities because of Levin's incompetence, misrepresentations and recklessness.”

Cage’s $10 million Las Vegas mega mansion is just one of the failed would-be investments the actor is looking to sell in hopes of settling his staggering debts and reining in his expenses.

His similarly-priced Bel-Air home is also for sale, as is his $12 million Rhode Island residence.

What’s more, the IRS in July filed a tax lien against one of Cage's $3.55 million properties in New Orleans, and the Times-Picayune reports two of the actor’s multi-million dollar homes have foreclosed after the he failed to make $5.5 million in mortgage payments.

Those Big Easy residences will be auctioned off on Nov. 12, according to the local paper.

The Oscar winner’s real estate liquidation is going on overseas, as well: The Daily Mail reports Cage recently accepted a lowball offer on the mock-gothic castle in Midford, England, that he bought in 2007 for £5 million ($8.18 million US). According to the paper, the actor has agreed to sell the property at a significant loss, for “closer to £3.5 million” ($5.73 million US).

The transaction follows the recent unloading of Cage’s luxury townhouse in nearby Bath, England, and the selling of his 28-room Bavarian castle in April.

While the Bath property was sold for an undisclosed amount, the castle was said to have fetched $2.5 million.

This is not the first time the Academy Award winner has found himself in a “Face/Off” with the IRS: The federal bean counters last year objected when Cage reportedly tried to pass off $3.3 million in personal expenses – limousines, meals, gifts, and costs associated with his private Gulfstream jet – as business expenses.

While the IRS originally demanded $1.8 million in relation to the less-than-truthful tax filing, the actor ended up paying just $660,000 to settle that debt.

Cage earned $40 million between June 2008 and June 2009 and has a net worth of $38 million according to Forbes magazine.

Melissa Arseniuk writes about Las Vegas entertainment and celebrity events. She can be reached at 702-948-7823 or by e-mail at [email protected].

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