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twitterTax troubles force Nicolas Cage into leaving Las Vegas
Actor owes $6.6 million in back taxes, other debts on Las Vegas mega mansion
Tuesday, Nov. 3, 2009 | 10:18 a.m.
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.
Sun Coverage
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 melissa.arseniuk@lasvegassun.com.
Discussion: 21 comments so far…
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Locally owned and independent for more than 50 years.
At least he still has his looks.
...leaving Las Vegas, returning to "Raising Arizona".
I bet is broker made out lot better than he did.
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With so much real estate Nick would need a billon a year to pay for the taxes, utilities, maintenance crews, and other miscellaneous items.
idiots.
Guy sure had alot of mansions. How many more does he have? He must have at least one left.
Helluva actor though. One of my favorites.
i don't feel a bit sorry for this guy or anyone that has THAT much money and feels the need to show off by buying stuff.
the amount he spend on just ONE of those homes that went to foreclosure could have kept 10 families in new oreleans in THEIR homes.
they guy has had 3 or 4 good movies and 247 horrible ones.
It's been said a million times, but it's still true: You shouldn't invest money that you can't afford to lose.
For most people, the best way to go is inflation-protected U.S. Treasury bonds. Sure, they're boring -- but a whole lot of investors over the last couple years could have used a little more boredom in their lives.
Screw the IRS, if Obama and the other tax cheats who are government employee's get away with not paying taxes and don't pay interest, fines, and penalties then we should get the same treatment.
If we as Americans stopped paying taxes that would send a message to DC and tell them to fire the tax cheats in DC, live by the same rules we do then we'll pay taxes. Until then, screw you just as you're screwing us.
Mr. Cage obviously forgot some golden rules, Firstly you don't trust anyone else with your money. Secondly you don't spend untaxed revenue without first putting aside what you are gonna need when Uncle Sam sticks his open hand in your pocket. Lastly, you NEVER accept lowball offers on overseas real estate which will rebound at a later date. Land is like gold, it always rebounds..
with that kind of money he should have moved to switzerland and enjoyed the lower tax system they offer. what a goof!
"The guy has had 3 or 4 good movies and 247 horrible ones."
247 bad movies? That's nothing compared to the amount of bad movies that Eddie Murphy has been in. LOL
So you can't say Cage is the worst actor on the planet. There's at least one guy worse.
shia lebeouf?
I only liked him in one movie. He is ugly, pompous and boring.
And pay your taxes! You lowlife jerk
PeterGun : Yeah but it's those 247 horrible movies that were probably the big paydays for Cage..
Let's see now, over 48 million for houses and castles and he blames his financial advisor? He's dumber than than most of his movies and thats pretty freakin dumb.
Cage, drop me a line. I can show you how to live 100% tax free, guaranteed! All you need to do is hook-up with my guy who handles all of the off shore stuff for not only me but for some famous politicians. 100% legal. Ethical? Sure, if you think that the low life scum - worthless feeders who reside here in the US and who milk the welfare system should not get one cent from your hard earned money! Why anyone with substance in the US pays taxes these days is beyond me.
i am crying in my beer - oh, don't have any beer. So Nick, fella, pay up and shut up.
Umm, I don't think Cage is reading the comments. It is newsworthy to find out, the star also has probs. You can only eat so many sandwhiches, but I appreciate anyone who has wealth and enjoys it. I subscribe to the philosophy that a man's wealth is measured by the things he can afford to live without. By this measure, I am doing ok. Any other barometer would show otherwise. Ok, whats cooking at the soup kitchen tonight? you know it has been said, you havent lived till you hit the dipsey dumpster behind the colonel. It looks like I have something to look forward to. kfc I came, I saw, I dumpstered