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Michael Jackson Estate

The IRS is

Off the Wall!

2/10/2014 12:45 AM PST BY TMZ STAFF
EXCLUSIVE

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Michael Jackson was broke as a joke when he died ... so the IRS tax attack is showing a glaring ignorance ... so claim the people who run the MJ Estate.

Sources connected with the Estate tell TMZ ... they never suggested the Beatles catalog was worth ZERO -- to the contrary they agree it's worth around $1.5 BILLION.

That said ... sources say there's a reason they put a big fat zero in the Beatles column when they filed tax returns just after Michael died.  They say there  was a $700 million loan taken against the purchase of the catalog, bringing the net value to $800 million.  Michael and Sony were 50/50 partners ... which means Michael's share was around $400 million

Now the debt.  Michael leveraged his interest to the hilt -- he borrowed $320 million against the catalog.  And He owed another $200 million in personal debt ... And that's why they put ZERO.

One bone of contention -- although the Estate values the catalog at $1.5 billion, the IRS says it's DOUBLE that amount.

Estate sources say the IRS is also off base on the issue of MJ's likeness and image, which they valued at only $2,105 at the time he died.  The IRS says it's worth more like $434 million.

Our sources say you have to look back at June, 2009.  They say Michael made zilch on his likeness and image for the 15 YEARS before his death -- no commercials, not even T-shirts ... no one wanted to be associated with him -- at least commercially.

And finally ... as for the Jackson 5 music collection -- the Estate says it was worth $11.2 mil when Michael died ... the IRS says $45.5 mil.

So the sources say after settling up with Motown, MJ's interest was a lot less than people think.  The Estate would gladly sell Michael's rights even today for $45.5 mil ... they say they'd sell it for $30 mil!

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62 COMMENTS

No Avatar
1.

Brian    

A bunch of nonsense. You can't get out of taxes you owe by wasting hundreds of millions. Pay your taxes freeloaders.

253 days ago
2.

Osweetsarah    

Let him be dead in peace. Stop running his name through the mud.

253 days ago
3.

Ginger    

This looks like Kim Kasdashian

253 days ago
4.

HATES SO CALLED CELEBS    

3 ANGRY BITTER WHITE ADOPTED KIDS--WITH ABSOLUTELY NO TALENT ! If MJ wasn't so Weird and In Denial he could have had a BIOLOGICAL TALENTED BLACK KID that would be making his own money by now instead of waiting for handouts like these three RANDON STRANGERS !!!

253 days ago
5.

dimes    

Please. They tried to pull a fast one, and got caught. Now they'll have to pay whatever they can negotiate down.

253 days ago
6.

NOT ELMO    

I HEAR JANET JACKSON IS A MAN.....

253 days ago
7.

MrHarryBawls2016    

Michael Jackson: will we ever know?

Almost 10 years after his death, 2 questions linger: was Jackson guilty of the crimes against him? Did Jackson commit suicide? I believe both answers are yes. Every single one of the police officers/ crime investigators/ prosecuters involved in both cases who saw first hand all of the evidence said there was no doubt he was guilty. And the fact that Jackson's career in his own country was dead and there was no chance of him being popular again shows he took his own life. Now we have the despicable Joe and Katherine Jackson and their children trying to get their grubby hands on every available penny that Michael ever earned and a child of Michael's (his daughter) who doesn't want to live in the world either. Michael's legacy is not like Elvis Presley's. Michael Jackson, from his shocking appearance through plastic surgery, the child molestation charges and now his family being revealed for the selfish money grubbing leeches they are, leaves behind the most shocking and disturbing legacy of any celebrity since the term "celebrity" was invented. P.S. Janet Jackson: you ruined your career too over your antics after Michael's death. Was it worth it?

253 days ago
8.

billybob    

So that the Jackson's hired Doc Murry to kill Michael was all for nothing! They must be very bitter now . . .

253 days ago
9.

john     

It's funny, Michael Jackson, the biggest pop star in the world was black and wanted to be white. Now the person who took over MJ's spot as the biggest pop star in the world is white and wants to be black. How the world has changed

253 days ago
10.

static    

They may screw a lot of people but the IRS isn't one of them.

253 days ago
11.

BLUE UGLY 💩    

They're not getting their hands on that Beatles catalog

253 days ago
12.

Jackie    

I knew it was impossible for Michael Jackson to be "broke broke"...he was asset rich, cash poor. Too bad MJ sucked at money because that guy would have had several BILLION.....he owned The Beatles AND Michael Jackson music...HOLY CRAP $$$$$$....ALSO that catalog had all sorts of other famous artists.

253 days ago
13.

mj fan forever    

BIG BULL**** that Michael Jackson was so broke and no one wanted to be associated with him BIG BS EVER!!! Not by chance it was AEG who asked him to go on Tour NOT Michael Jackson. And it went SOLD OUT INSTANTLY. Another BS that he did nothing for 15 yrs, how about Thriller 25, Hold my hand leaked to say few, he was always creating and didn't need to be on stage 24/7 to be remembered he's Michael Jackson!!! And BS circulating that the albums sales went down, Michael Jackson has always had billions of fans from all over the world, one cannot earn billions like he earned just because is dead when you are not so famous!!! Media bull**** as always!!! It's so damn clear that the IRS wants to grab Michael Jackson's money as it always happened and the Estate claiming the broke as hell BS, they have to defend themselves but I don't accept they paint him that way, they couldn't raise a dime if it was not for Michael Jackson his name and legacy and couldn't do a damn thing for his finances if he hadn't appointed them as executors of his Estate, they are not the genius who raised billions from zero, he is Michael Jackson that's why they could be so "good" to make billions!!! WTF!!?? The greed as always guides these actions and as always each side throws mud on Michael Jackson's name to win it's beyond absurd!!!

253 days ago
14.

Crabby    

not only was he an ugly child molester now he is a tax cheat.

253 days ago
15.

Brandon    

There is no - BEATLES CATALOG, never been.
There WAS only the ATV Music Publisching catalog consisting of 6000 songs in 1985 - BOUGHT by MJ and in 1995 MERGED with Sony Music into Sony/ATV Music Publisching catalog - NOW CONSISTING OF MORE THAN 2 MILLION SONGS of which there are 186/256 of the Beales songs.
The Sony/ATV (catalog) is NOW the biggest music publisher, and except the Beatles, it owns songs of Elvis Presley, Bob Dylan, Eminem, Justin Bieber, Beyonce, and thousands of big and biggest artists and musicians.
SONY/ATV is now worth more than 3 billion dollars, and since 2000 they have invested 1 billion dollars into buying news catalogs.
STOP SPREADING BS.

253 days ago
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