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Post by Craazyforadam on Jan 22, 2016 0:33:09 GMT -5
Forbes was very clear about "pretax." And I believe Adam was making a joke in the interview & being humble. From what I can tell -- It was certainly pretax and almost certainly post management, professional and legal expenses. However Adam lives in California so taxes are extremely high -- highest in the US. Even with the best planning, he pays a lot of taxes. $10 million probably ends up being > $6.5-7 million net. And that pays for a lot of boots. I think, in this discussion we, as well as some of the media/djs, etc are mixing up personal income to him, versus to his company. Adam pays personal income tax on whatever he pays himself, out of the income that his business generates. His business, is the one that has to provide a pre-tax estimate, and based on that, corporate taxes are paid, usually certain artist's management fees are tied to key business measures like pre-tax income, and Forbes is likely to find a way to grab such a number too, via their various sources. This number reflects what his enterprise has earned bottom-line, and if Adam were to liquidate his business, then this is approx. what he could pull out, and then pay everything in personal taxes. But obviously, Adam is not doing that. He pays himself a reasonable 'salary', and that portion is what lands in his personal bank account, and it is very believable that Adam was conservative and frugal and decided to leave quite a bit of money in the business itself, over the years. His personal income tax would only be assessed on what he paid himself, the rest is assessed via corporate taxes, and hence his statement, that it is not like he actually personally gets to have these 10 mil, is very true. In either case, the tax rate is high in CA (ca 34 % federal + 8.8 % state taxes), and only the after tax money is actually available to his corporation, just like we as private citizens only have the after tax money available to spend. Adam's personal income is and can only be a portion of any estimated post-tax amount, if the business wants to stay alive, but it likely is even much smaller than that. Adam has surrounded himself with smart people, who advise him well, from anything I can tell. He gets the bigger picture, even if he might leave the money details to others, or somebody gets it for him.
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nonotme
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Post by nonotme on Jan 22, 2016 1:05:42 GMT -5
That tax calculator seems to assume that a property in CA has had the same owner for some time. Property tax here is approx 1% of purchase price plus various fees from the county and/or city. Then it goes up a very limited amount each year. A house costing $2,995,000 would have property taxes right after purchase of approx $29,950 per year + some local add-ons.
The way the tax is figured - based on purchase price - means that two houses side by side of equal value might have very different property taxes, depending on the year each house was purchased.
peace&love
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Post by stampsgal on Jan 22, 2016 1:29:27 GMT -5
I think, in this discussion we, as well as some of the media/djs, etc are mixing up personal income to him, versus to his company. Adam pays personal income tax on whatever he pays himself, out of the income that his business generates. His business, is the one that has to provide a pre-tax estimate, and based on that, corporate taxes are paid, usually certain artist's management fees are tied to key business measures like pre-tax income, and Forbes is likely to find a way to grab such a number too, via their various sources. This number reflects what his enterprise has earned bottom-line, and if Adam were to liquidate his business, then this is approx. what he could pull out, and then pay everything in personal taxes. But obviously, Adam is not doing that. He pays himself a reasonable 'salary', and that portion is what lands in his personal bank account, and it is very believable that Adam was conservative and frugal and decided to leave quite a bit of money in the business itself, over the years. His personal income tax would only be assessed on what he paid himself, the rest is assessed via corporate taxes, and hence his statement, that it is not like he actually personally gets to have these 10 mil, is very true. In either case, the tax rate is high in CA (ca 34 % federal + 8.8 % state taxes), and only the after tax money is actually available to his corporation, just like we as private citizens only have the after tax money available to spend. Adam's personal income is and can only be a portion of any estimated post-tax amount, if the business wants to stay alive, but it likely is even much smaller than that. Adam has surrounded himself with smart people, who advise him well, from anything I can tell. He gets the bigger picture, even if he might leave the money details to others, or somebody gets it for him. Appreciate the clarity of your post. Great post! Adam is a business (and has business names---one for sure is his music, and he probably has others.) Why was I not connecting the dots to basic business practice . Sheesh ... As per the interview comment he made--- he pays himself a salary ....pocketing for his needs, supporting his company, and taking the best tax advantages.
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Post by Deleted on Jan 22, 2016 12:30:53 GMT -5
That BLI interview as soooooooo good! it was fun & silly, but they got information out of him too! He is soooooooo happy, creatively! Loves his life. Loves his house! He didn't deny the 10 million figure! $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ But Adam also says: "That doesn't mean I pocket all that money. That's how much I've like, generated, you know." So sounds like 10 million is his gross and not his net. I.e., his management, etc, is paid out of that 10 million. More than likely being a deliberately self deprecating and bit vague, there is nothing absolute, scientific or factual about that $10M figure. That is his polite 'none of your fucking business' response to questions that are in fact none of our business. jmo
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Post by nica575 on Jan 23, 2016 10:41:53 GMT -5
But Adam also says: "That doesn't mean I pocket all that money. That's how much I've like, generated, you know." So sounds like 10 million is his gross and not his net. I.e., his management, etc, is paid out of that 10 million. More than likely being a deliberately self deprecating and bit vague, there is nothing absolute, scientific or factual about that $10M figure. That is his polite 'none of your fucking business' response to questions that are in fact none of our business. jmo agree!
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