I always wondered how even the lowest tier rappers could afford chains that are worth more than my car. Apparently, thanks to their CPAs, they can write off bling purchases because, according to this article over at Plentii, it's part of maintaining their "brand." The article is pretty interesting in its depth of how basically rappers can write off anything they buy with a little creativity. Here's a little excerpt:
Rappers can deduct the cost of touring. They can deduct touring costumes, extravagant music videos, and insane home studio equipment. They can amortize the home studio itself. Moreover, Catalano says they should deduct their expenses or they have to give that money to the tax man.
It's a pretty simple scenario: say, you're an underground rapper who suddenly hits big. You get a $50,000 royalty check one week and now you're looking at perhaps $20,000 in tax liability to Uncle Sam.
“I never recommend a client spend money just to get rid of taxes. You want to reduce taxes with expenditures that''ll expand your business,” says Catalano. “Buy the future, if you can. Ask yourself, 'Is there something I can do for the next record or promotion, the next video, to help me make more money next year or the ensuing years?'”