Coli Industry Insiders... What's a Tax Write-off?

[razassin]

We all have read or heard about this term in life... Its been discussed in the rap game before by industry giants like Jay Z sayin it doesnt exist...



My real question tho, is whats the purpose of signin established artists n shelvin' them

Im pretty sure you gone have to pay an artist with a large fanbase a fee just to sign to your label, but why do this when the mufuka aint gone drop an album n u wont be gettin any money from him? Is that when the supposed ''tax write off'' myth kicks in n u get a compensation from a havin a muthafukka doin nothin?

Lots of examples, rakim to aftermath, busta rhymes n 20 other muthafukkaz on cash money, MOP to G unit, etc...

If I had a music label I would only do this to lock them up in 360 deals n eat off their show money, but there gotta be a real benefit, or is it just a bet record labels make on these artists n later based on market research they find out they will be losin money on them?

Then why not do the market research before signin them ?

Another example is Lil Wayne, Birdman didnt drop the Carter V cuz then he would activate a 10 million dollar to lil wayne clause?

Someone school me on this subject please...

 

[Double Burger With Cheese]

It’s a term that’s thrown around in ignorance a lot. Signing someone for a write off dosent make sense financially, as you can only write off an expense. And there are limits and maximums to how much you can write off. For example, some people think that you can write off all of your charitable contributions, which is not true. All of these write offs have caps.

So artist can be tax write offs, but no one is signing an artist with the intentions of a tax write off. That’s what you would call hustling backwards.

So basically, you can only write off something where you took some type of fiscal loss, and you can’t write off the full amount or even close to it. So if you are doing a write off, you are never fully recovering what you spent or lost. So no one is getting signed to be written off.

 

[El Vato]

are you serious and you sporting a Jay Z pic lol wow

 

[razassin]

are you serious and you sporting a Jay Z pic lol wow

I am Vato

 

[razassin]

It’s a term that’s thrown around in ignorance a lot. Signing someone for a write off dosent make sense financially, as you can only write off an expense. And there are limits and maximums to how much you can write off. For example, some people think that you can write off all of your charitable contributions, which is not true. All of these write offs have caps.

So artist can be tax write offs, but no one is signing an artist with the intentions of a tax write off. That’s what you would call hustling backwards.

So basically, you can only write off something where you took some type of fiscal loss, and you can’t write off the full amount or even close to it. So if you are doing a write off, you are never fully recovering what you spent or lost. So no one is getting signed to be written off.

thank for your explanation

In your opinion, why these labels signin rappers n not lettin them drop albums?

 

[Double Burger With Cheese]

thank for your explanation

In your opinion, why these labels signin rappers n not lettin them drop albums?

The simplest explanation is usually the best. In most cases it’s probably because they predict a loss or a minimal ROI. I’m sure I’m some situations they are flexing their power because of disput between artist/management and the label. But in most cases I would assume it just comes down to money and them thinking they won’t be able to recoup.

 

[The Devil's Advocate]

It’s a term that’s thrown around in ignorance a lot. Signing someone for a write off dosent make sense financially, as you can only write off an expense. And there are limits and maximums to how much you can write off. For example, some people think that you can write off all of your charitable contributions, which is not true. All of these write offs have caps.

So artist can be tax write offs, but no one is signing an artist with the intentions of a tax write off. That’s what you would call hustling backwards.

So basically, you can only write off something where you took some type of fiscal loss, and you can’t write off the full amount or even close to it. So if you are doing a write off, you are never fully recovering what you spent or lost. So no one is getting signed to be written off.

this explanation is perfect

 

[Young/Nacho\Drawz]

thank for your explanation

In your opinion, why these labels signin rappers n not lettin them drop albums?

Jay-Z said in a breakfast club interview that the tax write off thing isn't real.

I remember Canibus old manager Louis Lombard said one time at a forum that you can make a million dollars off of an artist sitting on the shelf, the music industry is funny like that. End quote. I never knew what he meant but was always intrigued by that statement. There are so many ways you can manipulate the system that I can see people getting signed to be a tax write off. There was talk a few years ago about rappers writing off the money they made it rain in the strip club. If you wanted to launder money, couldn't you used a rapper in the tax write off scenario and make it happen? Just thinking out loud.

 

[The Devil's Advocate]

Jay-Z said in a breakfast club interview that the tax write off thing isn't real.

I remember Canibus old manager Louis Lombard said one time at a forum that you can make a million dollars off of an artist sitting on the shelf, the music industry is funny like that. End quote. I never knew what he meant but was always intrigued by that statement. There are so many ways you can manipulate the system that I can see people getting signed to be a tax write off. There was talk a few years ago about rappers writing off the money they made it rain in the strip club. If you wanted to launder money, couldn't you used a rapper in the tax write off scenario and make it happen? Just thinking out loud.

let me break it down for you..


if i pay 100k for a chain and i'm a rapper.. that's marketing cause it has my brand logo on it (roc chains are all write offs)... if i never buy the chain, i can't write it off. so signing a rapper is costing me money to sign, costing me money in the studio, costing me money to feed, pay for tour, pay producers, pay for videos, etc.. yes i get to write that off, but why write it off, when i could have not signed him from jump, and never spend the money

so jay is right... that's a myth


laundering is what BMF did... that's very true

you take 1 mil in drug money... pretend you have a label... get your artists chains and cars and studio time and blah blah blah... but really you just paying with drug money, not record label money... then the items you buy, you turn around and sell.. so you spend 300k on a lambo, sell the lambo for 250k.. you just washed 300k of drug money into 250k of sold lambo money. this is how jake the jeweler got locked up. bmf laundered over 250 million through him.. buying chains that never were made, overpaying for chains, buying chains and selling them to their artists and crew... still the feds gonna catch up eventually


how can you make money off a shelved artist...... that i don't know.. that's some deep industry shyt to make money off a nikka that ain't putting shyt out... unless you got some 360 or committing huge levels of fraud (like spending his budget, knowing he's never coming out).... i don't know on that one

 

[FRIED MASON]

Lil Bow Bow on Cash Money = Tax Write-Off

Birdman forgot that Bow Wow was signed to YMCMB

 

[BadBoy]

def jam tried to make frank ocean a tx write off but he wasn't having it

 

[Young/Nacho\Drawz]

let me break it down for you..


if i pay 100k for a chain and i'm a rapper.. that's marketing cause it has my brand logo on it (roc chains are all write offs)... if i never buy the chain, i can't write it off. so signing a rapper is costing me money to sign, costing me money in the studio, costing me money to feed, pay for tour, pay producers, pay for videos, etc.. yes i get to write that off, but why write it off, when i could have not signed him from jump, and never spend the money

so jay is right... that's a myth


laundering is what BMF did... that's very true

you take 1 mil in drug money... pretend you have a label... get your artists chains and cars and studio time and blah blah blah... but really you just paying with drug money, not record label money... then the items you buy, you turn around and sell.. so you spend 300k on a lambo, sell the lambo for 250k.. you just washed 300k of drug money into 250k of sold lambo money. this is how jake the jeweler got locked up. bmf laundered over 250 million through him.. buying chains that never were made, overpaying for chains, buying chains and selling them to their artists and crew... still the feds gonna catch up eventually


how can you make money off a shelved artist...... that i don't know.. that's some deep industry shyt to make money off a nikka that ain't putting shyt out... unless you got some 360 or committing huge levels of fraud (like spending his budget, knowing he's never coming out).... i don't know on that one

Let me run this hypothetical by you. If I have to have a million dollars less than I have in order to fall into a lower tax bracket that will have me paying two million less in taxes, couldn't I sign a artist and throw a million at him that I know I'll lose? I dunno but I can see the tax write off thing working in some situations.

 

[The Devil's Advocate]

Let me run this hypothetical by you. If I have to have a million dollars less than I have in order to fall into a lower tax bracket that will have me paying two million less in taxes, couldn't I sign a artist and throw a million at him that I know I'll lose? I dunno but I can see the tax write off thing working in some situations.

for all that you can throw it at an artist who's already winning...or throw it at 1 video.. you don't need to go through the trouble of signing some guy, that you know ain't shyt, just so you can throw him money and put him in the red

 

[DAT NICCA KELSO]

 

[DarkmanX]

It’s a term that’s thrown around in ignorance a lot. Signing someone for a write off dosent make sense financially, as you can only write off an expense. And there are limits and maximums to how much you can write off. For example, some people think that you can write off all of your charitable contributions, which is not true. All of these write offs have caps.

So artist can be tax write offs, but no one is signing an artist with the intentions of a tax write off. That’s what you would call hustling backwards.

So basically, you can only write off something where you took some type of fiscal loss, and you can’t write off the full amount or even close to it. So if you are doing a write off, you are never fully recovering what you spent or lost. So no one is getting signed to be written off.

Tax write off might be the wrong word for it but maybe robbery is the right word. Claim you (aka the label) have spent x amount of dollars on said artist (budget, studio time etc) but really is was you (boss, manager or whoever else) who took out the expenses and write off the rest.

Might sound dumb idk but im just throwing out shyt.