Just weeks after being fired from one of TV’s most watched shows, Charlie Sheen launched his “Violent Torpedo of Truth/Defeat is Not an Option” tour, turning himself from one of Hollywood’s best-paid TV and movie actors into a one-man entertainment show displaying his Adonis DNA to fans across the country.
It was Sheen’s first business venture after he dominated the news for weeks and his bizarre remarks made him the butt of late-night talk show hosts, newspaper columnists and everyone in between. With the media and the TV-watching public watching, his tour sold out fast, making him a hot commodity.
But his shows opened to mixed reviews. Maybe his Tiger Blood wasn’t enough, but as a solo showman, he’s able to take advantage of the tax code to make sure he’s still #Winning with his finances. So how can Charlie Sheen deduct a few expenses he incurs as a Violent Torpedo of Truth? Record the shows and sell them to the public!
Internal Revenue Code Section 263A requires the capitalization of expenses to produce a creative work, like a one-man entertainment show sold on DVDs. With a series of shows yet to take place over April, and with the total cost of creating the show able to be capitalized and deducted for as long as they’re producing income, his numbers will add up only to lower his tax burden later.
Sheen’s costs would include production costs, costs to record the shows and researching and preparing his material. While his show’s formula is simple – himself and maybe a sidekick asking him questions –he may be looking for ways to change things up. If he does, his accountant will know what to do.
Given the popularity of Sheen’s former TV show “Two and a Half Men,” it’s easy to see why he’s as popular as a rock star from Mars. And if you’re looking for a tax attorney with Tiger Blood to handle your bank levies, wage garnishment and tax debt with the IRS, give us a call.
Sign up for our newsletter and be the first to find out when exciting IRS news happens. Yes, exciting. We're really into taxes.