Michael Jackson's Estate Claims He Was Broke When He Died
Posted by Joseph Lee on 02.10.2014
They didn't cheat on taxes...
TMZ reports that Michael Jackson's estate claims that he was broke when he died and the IRS' investigation is ignorant.
They also claimed that they never said the Beatles catalog was worth nothing, and agree that it's worth around $1.5 billion. The reason they put zero in that section when they filed tax returns after Jackson's death was a $700 million loan taken against the purchases of the catalog, which brought then net value to $800 million. Jackson and Sony were partners and split the amount evenly, so Jackson's share was $400 million. Jackson leveraged his interest and borrowed $320 million against the catalog. When added with the $200 million in personal debt, it had that amount at zero. His estate said the catalog is worth $1.5 billion but the IRS says it's double that.
Jackson's estate claims the IRS is also wrong about Jackson's likeness and image. It was valued at $2,105 when he died but the IRS claimed it was worth $434 million. His state claims that in June 2009, Jackson didn't make any money on his likeness and image for fifteen years before his death as no one wanted to be associated with him commercially.
Finally, the estate said that the Jackson 5 music collection was worth $11.2 million and the IRS said it was $45.5 million. After settling with Motown, Jackson's interest was less than believed. The estate says they would sell the rights for the IRS' believed amount, or even $30 million.