Xzibit's financial woes

Sad.

 

http://apps.detnews.com/apps/blogs/taxingd....php?blogid=377

 

Xzibit no longer enjoying a pimped lifestyle

 

Former "Pimp My Ride" host Xzibit, a double-threat Detroit-born rapper/actor, owes more than $959,523 in delinquent federal taxes, according to public records.

 

A lien filed last month is the fourth tax problem in recent years for Xzibit, real name Alvin Joiner, who had a cameo as a lunch-line linguist in Eminem's "8 Mile."

 

Xzibit traced the roots of his financial problems to the cancellation of his MTV show and the imminent foreclosure of his Woodland Hills, Calif., home in July 2009, according to U.S. Bankruptcy Court records.

 

He's filed bankruptcy twice since 2009, but both filings were dismissed for various reasons. On July 29, 2009, he listed assets totaling $739,433 -- mostly homes in California and New Mexico -- and more than $1.4 million in liabilities, according to court records.

 

For a man who reached mainstream fame through an MTV show about pimping vehicles, Xzibit didn't own one. He was leasing a 2006 Range Rover for $2,230 a month, according to bankruptcy court records.

 

The bankruptcy filing provides rare insight into the volatile fortunes of an entertainer. In 2007, he earned $497,175 starring in "Pimp My Ride." But after the show was canceled, his income plummeted to $67,510 in 2008, according to court records.

 

In the 2009 bankruptcy filing, he acknowledged owing the IRS and said he had a verbal agreement to pay $250/month.

 

What's owed:

 

* The IRS filed a $22,196 lien against him Nov. 2 with the Los Angeles County Recorder.

* The IRS filed a $435,487 lien July 21, 2009, with the Bernalillo County Clerk in New Mexico, where he owns a home.

* The IRS filed a $205,485 lien Feb. 4, 2009, in Los Angeles County. He owes income taxes from 2007, according to the lien.

* The IRS filed a $296,355 lien April 17, 2008, in Los Angeles County for unpaid income taxes from 2006, records show.

 

The address on the most recent lien is a public accountant's office in West Hills, Calif. But here's his former 7,650-square-foot house in Woodland Hills, which was sold last week for $610,000:

 

His side:

 

Xzibit could not be reached for comment. His lawyer Arnold Ogren also could not be reached this morning.

 

From The Detroit News: http://apps.detnews.com/apps/blogs/taxingd...7#ixzz1DgS2SlGU

 

You reallly have to piss off the IRS to have them file liens. They WANT to settle. They don't want to own property. They give you so many chances.

I don't get it. Make the fcuking money, pay the fcuking taxes. Simple

I was surprised about this last month, I guess I still don't expect these "rap" guys to ALL live up to the damn stereotype and piss their money away making it rain while avoiding the IRS...

 

Stupid. Hopefully his story can serve to help the younger gen understand what's important.

 

I read recently some insane, and I mean INSANE stat about how something like 75% of all NFL football players are dead broke within just 36 months of retirement. I couldn't believe the number was that high, I must be naive lol.

You reallly have to piss off the IRS to have them file liens. They WANT to settle. They don't want to own property. They give you so many chances.

I don't get it. Make the fcuking money, pay the fcuking taxes. Simple

 

You're correct, unless they believe you actually have the money (hiding it offshore, assets worth the total value of the debt, etc).

 

Then they won't accept the official settlement attempt, which is called an "offer in compromise" for the lurkers.

 

If you're broke, no problem, they'll settle for as little as a single penny on the dollar (true). But if they believe you have the money somewhere they'll repo everything and make life difficult.

$2230 a month LEASE?! He got his ass bent over on that. You can Lease RRS S/C's for around a grand a month! or less!

I was surprised about this last month, I guess I still don't expect these "rap" guys to ALL live up to the damn stereotype and piss their money away making it rain while avoiding the IRS...

 

Stupid. Hopefully his story can serve to help the younger gen understand what's important.

 

I read recently some insane, and I mean INSANE stat about how something like 75% of all NFL football players are dead broke within just 36 months of retirement. I couldn't believe the number was that high, I must be naive lol.

they had someone on cnbc talking about that with the nfl players, and i thought it was even higher like 80% of them. Its obvious what happens, i just dont understand how they get so carried away they let it happen. there is an x-player i forget which one whose trying to get the NFL to improve its education for the players on how to not blow through all their money and expect it to never stop coming in

Stupid. How about Wesley Snipes for a even better role model on tax paying.

they had someone on cnbc talking about that with the nfl players, and i thought it was even higher like 80% of them. Its obvious what happens, i just dont understand how they get so carried away they let it happen. there is an x-player i forget which one whose trying to get the NFL to improve its education for the players on how to not blow through all their money and expect it to never stop coming in

 

I believe you are right about the 80% of it, because my buddy on the patriots told us that when you go in, you have a financial advisor give a class to all the rookies. And they start the class out saying something like, look around you. 4 out of the 5 guys you see will be broke within so and so amount of time. And then they try and tell you how to plan. How to save and not to get caught up in the game up trying to out do each other. My buddy has a house in boston, 2 cars (niether of which he pays for thanks to gifts to the local honda dealer) and a nice 2.2mil a year contract. Doesnt spend shit.

I read recently some insane, and I mean INSANE stat about how something like 75% of all NFL football players are dead broke within just 36 months of retirement. I couldn't believe the number was that high, I must be naive lol.

Very common with people who have nothing, then all of a sudden have a few million dropped in their laps. They don't know how to handle it, and think it will last forever... Look at what happens to many lottery winners, same thing, most end up broke.

Sad stuff. He's a super charismatic guy, I hope he gets some more decent work soon.

$20 million to broke.

 

I believe you are right about the 80% of it, because my buddy on the patriots told us that when you go in, you have a financial advisor give a class to all the rookies. And they start the class out saying something like, look around you. 4 out of the 5 guys you see will be broke within so and so amount of time. And then they try and tell you how to plan. How to save and not to get caught up in the game up trying to out do each other. My buddy has a house in boston, 2 cars (niether of which he pays for thanks to gifts to the local honda dealer) and a nice 2.2mil a year contract. Doesnt spend shit.

 

An average NFL career is 3 years, so a player making $600k/year or $10 million/year is really no different than a regular Joe making $80k/year and spending all of it with no savings or investments....just a difference in lifestyle.

 

So the real question is what do you do with your money when you know you'll only be making it for 3-5 years?

 

If it were me, with those high salaries, I'd say buy up real estate and some kind of business. I like high end car dealerships....maybe that.

 

I feel for NFL players a bit given they make less than baseball and basketball, and have shorter careers..........and worse post career health. A big price to play for the best sport.

YO DAWG! IHEARD YOU LIKE MONEY,SO I TOOK SOME MONEY AND I PUT MORE MONEY IN YO MONEY.

$2230 a month LEASE?! He got his ass bent over on that. You can Lease RRS S/C's for around a grand a month! or less!

 

I really doubt it was that high, you know how the media knows nothing of automobile prices and over embellish prices.

 

Full size Range Rover SC in 2006 was $90,035. Westminster trim $4,500, rear entertainment $2,500. Add dealer prep, delivery, acquisition and bullshitterama fees and you get $100,000 or so. Not sure what California automobile tax is - let's guess 10.75%. Assume 35 - 38% residual at 48 month term, 0 down, and we're already at $2,000/month.

 

Add in some gay wheels and rubber and easily $2,300/month.

The IRS want their bling back.

 

 

The most amazing part of the story was a 7000 sf house went for 600k! Tons of people don't know how to manage money, nothing new. I still laugh at the clowns who make 15 dollars an hour, who live with their parents and spend all their funds at the VIP tables in the clubs. Financially illiteracy will be around for ever.

7500 sqft... property. House only 3K sqft.

The address on the most recent lien is a public accountant's office in West Hills, Calif. But here's his former 7,650-square-foot house in Woodland Hills, which was sold last week for $610,000:

 

idiot.

 

 

Very common with people who have nothing, then all of a sudden have a few million dropped in their laps. They don't know how to handle it, and think it will last forever... Look at what happens to many lottery winners, same thing, most end up broke.

 

 

Very true. Most end up broke, and broke fast. Once that perception of wealth seems like a reality for many of these quick-to-riches individuals, they begin living an expensive lifestyle. Buy large homes, expensive cars, extravagant vacations, etc. etc. etc. Yet, they lack the wisdom and expertise of the true wealthy households of the world, whom, even though they live lavishly, are really spending "conservatively" in compared to how much they are making passively through their managed network of assets that are well protected.

 

A football player may just setup a heavy bank account, buy some homes, vehicles, expensive parties, a boat or two, and in the meanwhile, he's just been suckered by some second-rate stock broker with charisma to dump more money. All the while, this player is saving zero dollars, and, since he comes from modest beginnings, is young, doesn't have a wise mentor, is even suckered more by more salesmen into "financing" this and that, to "Save" more money month to month...so now, from a few homes, luxury sedans/suvs, jewelry, clothes, and questionable investments dumped in cash, he's dupped into "financing" beyond his annual earnings, to make monthly payments on Ferrari's, etc.

 

Do they really know this is happening? Not until their paychecks get smaller and smaller....these people really need to take notes on Jay-Z, and other truly successful business people in entertainment.

A fool and their money...

Not surpised..So many true stories of similar senarios... Its too easy to loose all that bucks if you're not careful and/or forget your past.

The formula is simple, only spend the income that your investment generates never touch the principal even then spend conservatively and invest the balance to beef up the principal , don't bite more than you can chew!

 

Most these idiots need to outdo each other and few years later they find themselves in the unemployment line, DUMB, DUMB, DUMB

Why didn't dude keep rapping? He wasn't the best of all time or anything but wasn't all that bad either, at lest compared to some of the shit out right now.