how do rappers afford chains Vol. taxes

[niquefreak94]

It's obvious some of y'all have never filled out a tax form in your lives...niquefreak is dropping knowledge. With a cash transaction and no receipt, you are supposed to be an upstanding, honest, american citizen and report that income so it can be taxed. However if you don't, there is NO WAY for the govt to track that money and how much tax you owe on it. As nique said as long as you ain't taking out a mortgage...with that money (DUMB MOVE!) you are good.
Y'all never wondered how the hood Barbershop and hair Salon owners are rollin a different ride every week, or pushin' Benz's and BMW's? Same thing...cash transaction...not trackable...the smart ones report about 1/2 to 3/4 of what the actually make to the IRS to keep Uncle Sam off their back.

yeeessss man. barbers are be DOIN it bro

 

[flacobey]

I just got around to wearing this now
They say gold worth 1600 an ounce
So with no diamonds, my bracelet worth a townhouse

 

[semf]

you're assuming it's real . . . all that glitters is not gold

can anyone tell the difference between cubic zirconia and diamonds?

 

[cj863]

Funny how people try to give rappers a bad rap for wearing jewels. If they're wearing jewels its "they can't afford that, must be CZ's" Not many rappers are out here wearing CZ's, maybe SI diamonds and 10k gold. Your average citizen can afford some of the smaller pieces cats wear nowadays, and again you aren't really getting hit for a piece unless it's super brolic and better than average quality diamonds.

 

[apthekid]

THIS
1. walls of text w/ confident delivery = truth to those who don't know
2. yes. that's what I'M talking about. if it's hand to hand. cash for appearance/club show...then they spend that on jewels, drugs, bottles, strip clubs, etc. and the IRS has NO possible way of finding out. it's simple economics for one, and i've seen it first hand. but whatevs.

This was the point that I was making...Not paying taxes and not being taxed are not the same. A rapper does a walk-thru for 5k. He is legally obligated to REPORT THAT 5K AS INCOME. Likely however, he will not.

The IRS invest a LOT of money into FINDING OUT ABOUT INCOME LIKE THIS. Tax evasion is real, fellas...don't be silly.


Bellman, bartenders, waiters, valets, etc...ALL are SUPPOSED to report every dollar they make in tips as income. I was 2 of those professions...never reported a dollar. Doesn't mean it was legal.

 

[delasole47]

I think artists these days get most of their money from doing shows not from seling CD's anymore. Look at Curren$y for example. You don't need to have a hit record on the radio to be succesful anymore. Have a good following, do shows, and etc and your good

 

[devildog1776]

up until 2004 - 2005 gold was relatively cheap in terms of dollar value... the value of the worlds reserve currency is being devalued and the real currency, which is gold will outperform any assest in your portfolio going forward...

i got a 18k gold bangled easily sitting at 3k.....

another cuban link bracelet 14k valued about 2k

my diamond earring are worth 5 hundred if i try to sell it to a shop... I originally paid 850

diamonds arent worth anything...

 

[moonman818]

It's obvious some of y'all have never filled out a tax form in your lives...niquefreak is dropping knowledge. With a cash transaction and no receipt, you are supposed to be an upstanding, honest, american citizen and report that income so it can be taxed. However if you don't, there is NO WAY for the govt to track that money and how much tax you owe on it. As nique said as long as you ain't taking out a mortgage...with that money (DUMB MOVE!) you are good.
Y'all never wondered how the hood Barbershop and hair Salon owners are rollin a different ride every week, or pushin' Benz's and BMW's? Same thing...cash transaction...not trackable...the smart ones report about 1/2 to 3/4 of what the actually make to the IRS to keep Uncle Sam off their back.

The government always finds out... I hope no one is actually listening and thinking this is the gospel.

If a club promoter gets audited, they'll track that cash in no time.

 

[ohmygosher]

show money...

its UN taxed, so its easy to spend it on crazie stuff that cant be tracked... Jewels, clothes blah...

like drake said... Throw the checks in the bank and spend the cash in gucci...

Word to Yo Gotti.

From 22.5 a weekend to 90k.

 

[ninjahood]

It's obvious some of y'all have never filled out a tax form in your lives...niquefreak is dropping knowledge. With a cash transaction and no receipt, you are supposed to be an upstanding, honest, american citizen and report that income so it can be taxed. However if you don't, there is NO WAY for the govt to track that money and how much tax you owe on it. As nique said as long as you ain't taking out a mortgage...with that money (DUMB MOVE!) you are good.
Y'all never wondered how the hood Barbershop and hair Salon owners are rollin a different ride every week, or pushin' Benz's and BMW's? Same thing...cash transaction...not trackable...the smart ones report about 1/2 to 3/4 of what the actually make to the IRS to keep Uncle Sam off their back.

The government always finds out... I hope no one is actually listening and thinking this is the gospel.

If a club promoter gets audited, they'll track that cash in no time.

nah, imma have to stop you right there.

alot of "promoters" is really just glorified drug dealers just laundering money.

so if promoter A got 10 stacks for rapper B to come to club C, 9 times outta 10, if its all handshakes and smiles, business between 2 parties can't be taxed.

if that was da case, NT would have a SERIOUS tax problem with folks unloading thousands of dollars worth of sneakers with no kinda IRS involvement.

 

[moonman818]

nah, imma have to stop you right there.

alot of "promoters" is really just glorified drug dealers just laundering money.

so if promoter A got 10 stacks for rapper B to come to club C, 9 times outta 10, if its all handshakes and smiles, business between 2 parties can't be taxed.

if that was da case, NT would have a SERIOUS tax problem with folks unloading thousands of dollars worth of sneakers with no kinda IRS involvement.

You dont have to pay taxes if you're buying and/or trading shoes with an indvidual....

You guys keep talking in this "hustle" sense, but it happens all the time

I'm not denying that the whole "show money" is tough to track, but thats why these ****** always end up with the same exact problems.

 

[miketysonthekiller]

20212

still buying gold chains with diamonds. Why don't you just buy the damn gold and put stones on that ****. Same difference.

 

[meek meals]

I'm more interested in this "Can show/handshake money be taxed" debate than the How do rappers afford gold discussion...

Because like ninja said, what's stopping the IRS from taxing one of us if we have 10 pairs of South Beaches or Yeezys we bought for around 200, and we sell each pair for 1000 or so

10k profit - 2k cost of buying shoes

8k you going home with

And what's the difference between someone selling sneakers on NT > Someone selling sneakers on a big cartel site > The dude who owns flight club

Can it be taxed?

Does a new thread need to be made

 

[sawyer]

A few things here fellas...
Whoever said show money is not taxed is ABSOLUTELY INCORRECT. Show money is a form of income and unless that artist has residency in one of the few states that do not have income tax, they are DEFINITELY TAXED! The issue is that unlike most of us who get their taxes taken out before they ever see their check, show money is left to the artist to report to the IRS as income so that proper taxes can be assessed. This is the problem that many rappers that have tax issues down the road (waddup Young Buck) run into. They get a check for 10k for a show, and spend 10k. 3-5k of that 10k belongs to the man.
Second, that's the value of metals TODAY. By the time an artist gets a piece of jewelry, it has already been bought and held, likely for months at that point. So it's not worth (to the seller) what gold is worth TODAY. Also, without getting too much into distribution channels, jewelers buy jewelry from certain channels that buy precious metals in bulk. A lot of times, jewelry that is sold to these rappers were other pieces of jewelry that was melted down and reformed. Basically, there's a lot of recycling. ALSO, the range of precious metals is HUGE. There's a BIG difference, both in quality and price, between an top notch diamon and a flawed diamond. Same goes for gold, silver, and platium. (Before anyone says some monkey ****, yes, I know diamond is a mineral, not a metal...get off it). 20k gold is MUCH more expensive than 10k gold...
Finally, a lot of people have already touched on this, but a lot of times, jewelry is rented and or borrowed for promotional reasons.
In a nutshell, how do rappers afford chains?? 1) they dont 2) they can afford crappy quality 3) the IRS is essentially "loaning" it to them...they'll come around and collect soon enough. Even my man Nas got hit up by unc sam...

ummm...

first off, it's up to the discretion of the artist to report cash money as income to the irs. obviously, an accountant or hired financial help would suggest immediately disclosing all forms of income, but if i independently tour and do private shows with not much more than a verbal agreement and exchange of cash and services w/o contract, who is to say what exactly i earned, when exactly i earned it, and in what state/country i earned it in?

trust and believe: artists of any kind are either a) 'hiding' cash money they've received as a form of income, or b) only disclosing fractioned amounts of cash money they've received in favorable settings (let's say, you only report income from shows done in florida because florida has no state income tax).

also, the man does not get anywhere near 3-5k out of every 10k in cash you make. unless of course you yourself or your accountant is an idiot.

@ op:

gold hasn't sold for $900/oz for a few years now.

rappers who can afford chains usually do well enough for themselves to afford them. i'm not sure why that would be difficult to understand.

 

[sawyer]

I'm more interested in this "Can show/handshake money be taxed" debate than the How do rappers afford gold discussion...

Because like ninja said, what's stopping the IRS from taxing one of us if we have 10 pairs of South Beaches or Yeezys we bought for around 200, and we sell each pair for 1000 or so

10k profit - 2k cost of buying shoes

8k you going home with

And what's the difference between someone selling sneakers on NT > Someone selling sneakers on a big cartel site > The dude who owns flight club

Can it be taxed?

Does a new thread need to be made

what's stopping the IRS from taxing one of you if you have 10 pairs of South Beach's or Yeezy's you bought for around $200 and re-sold for $1000? well, the absence of being made aware of those transactions would certainly stop them. unless you tell the irs that you've earned income, how would they ever know to begin to tax it?

someone selling sneakers on niketalk is MUCH different than someone selling sneakers on a big cartel site. you're asking the difference btwn private salesmanship and a licensed merchandise vendor and the owner of flight club, but i'm pretty sure you already know the difference. yes, all of it can be taxed, but most likely private sales would go unnoticed to the irs unless reported. a licensed merchandise vendor most likely has an llc and c-corporation. the owner of flight club definitely has a c-corporation but may receive income through incentives, benefits, stock options, etc. taxed through an s-corporation rather than receive it as earned income through his c-corporation filings (lower rates).

it goes w/o saying, the richer you are, the easier it is to receive tax deductions and exemptions for your income.

 

[niquefreak94]

ummm...

first off, it's up to the discretion of the artist to report cash money as income to the irs. obviously, an accountant or hired financial help would suggest immediately disclosing all forms of income, but if i independently tour and do private shows with not much more than a verbal agreement and exchange of cash and services w/o contract, who is to say what exactly i earned, when exactly i earned it, and in what state/country i earned it in?

trust and believe: artists of any kind are either a) 'hiding' cash money they've received as a form of income, or b) only disclosing fractioned amounts of cash money they've received in favorable settings (let's say, you only report income from shows done in florida because florida has no state income tax).

also, the man does not get anywhere near 3-5k out of every 10k in cash you make. unless of course you yourself or your accountant is an idiot.

@ op:

gold hasn't sold for $900/oz (or even with in $100 of that) for a few years now.

rappers who can afford chains usually do well enough for themselves to afford them. i'm not sure why that would be difficult to understand.

this. just go to a basic jewelry store. i'm from Houston so i say just go the Galleria and look how much the high end, quality jewelry costs (gold and diamond)
it's not much for somebody like Jay, Drake, Wayne, Kanye, or even somebody like Plies, 2 Chainz, Gucci, Yo Gotti. Show money is the LICK.

 

[sawyer]

this. just go to a basic jewelry store. i'm from Houston so i say just go the Galleria and look how much the high end, quality jewelry costs (gold and diamond)
it's not much for somebody like Jay, Drake, Wayne, Kanye, or even somebody like Plies, 2 Chainz, Gucci, Yo Gotti. Show money is the LICK.

even the creator of worldstarhiphop.com went through the trouble of having ben baller create custom chains for himself, his personal assistant, and 2 other of his employees. i think he even had a couple smaller chains made for female friends/family of his. i can't remember the exact total cost of the 6 or so chains, but it was less than $100k and fairly easy to go about obtaining. you can have a very well crafted and beautiful piece of jewelry custom made for a few grand, perhaps even less if it's straight cash.

 

[jay86]

- advance from the record label
- make a deal with the jeweler to send customers his/her way
- buy gold items(chains, bracelets, bangles, etc.) from someone and melt them down to make what they want

 

[futuremd]

I always found it interesting how rap fans are so immersed in the business of music themselves compared to other genres. 

 

[eiddyfouw]

I always found it interesting how rap fans are so immersed in the business of music themselves compared to other genres. 

I think because rap has such strong ties to the "hustle".

 

[nocomment6]

Most of the items or props are rentals. These include the cars and the jewelry. The clothes and alcohol will most likely be a sponsorship since, it's relatively inexpensive form of advertisement for the company. But unless the artist has sold millions of records or has hosted hundreds of shows, or has other business ventures, the Bugatti in the video will be a rental and the same goes for the bling, which can also be cz.

As for the tax issue, interesting stuff.
We may want to start an official tax thread.

 

[jordan23dotcom]

Go watch "broke" espn 30 for 30

 

[jinkazama]

The government always finds out... I hope no one is actually listening and thinking this is the gospel.
If a club promoter gets audited, they'll track that cash in no time.

Come on dude...you think the IRS is stressin some lowly promoters. You think the gov is gonna waste the salary of several investigators and attorneys to recoup peanuts...They spending their time going after people who obviously cheat...millionaires, and corporations. If that promoter was smart it wouldn't even matter...they wouldn't have a case. If that promoter reported income and there are no W-2's...receipts...how do you think the IRS is proving that he/she avoided taxes?

You can believe what you want...like I said Barbers and Beauticians have been doing this for probably since the tax code was written. None I know have ever been visited by the tax man.

 

[solo polo]

Ask Young Buck is show money untaxed. Taxes are "supposed" to be paid on shows. No idea where you got this from.

never said they shouldnt pay taxes on it... what i said was it was UN taxed money..

like everyone else has said, if you and you homies want Juicy J to do a show at a club on saturday night all you need to do is pay his manager (or who ever).. its NOT a concert.

Juicy J will take the money and pay who he has to pay and spend the rest... no bank account for Un-taxed bread..

now IF and only IF the prompter files his taxes saying he paid Juicy J bread for a small show THEN eventually it'll come back on Juicy J when they audit that ****... BUT really tho, are YOU gonna throw a party and file taxes saying you made bread on it?

a concert, yes! small club.... naaahhhhhhhh.

 ive thrown MANY reggae & r/b parties in the south/NYC with special guest.... you finish the rest.

 

[you go boy]

nas qb piece is still one of my favs