Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek


Filed under: News | Also on the Geek Mind


Writing Off Justin Bieber's $75,000 Strip Club Bill

11 Updates
Writing Off Justin Bieber's $75,000 Strip Club Bill

YouTube Videos Comments

Full Story

Writing Off Justin Bieber's $75,000 Strip Club Bill

Justin Bieber allegedly dropped $75,000 in just a few hours in a Miami strip club. The King of Diamonds club told TMZ that Mr. Bieber “got $75k in 1 dollar bills and went wild.” It may sound silly, but Bieber has money to burn, and at 19, seems to be doing just that. More worrisome was the report that police searched his Los Angeles pad last week and reportedly found a trove of drugs that, luckily for Mr. Bieber, were evidently beyond the scope of their investigation.

Trying to put a business spin on all this, is it possible that Mr. Bieber was out entertaining his record producers or recording execs? Well, it’s possible, which might suggest the tab could show up on Mr. Bieber’s expense report or even his tax return. After all, isn’t a big bar tab or restaurant bill deductible?

It depends. Even if he was entertaining business associates and discussing business, there are limits. The tax code says lavish expenses are a no-no. Taxpayers can deduct reasonable business expenses, but not lavish or extravagant ones.

So if this, er, entertainment was business entertainment, some of it might be OK, provided that it wasn’t lavish or extravagant. What’s lavish or extravagant? The IRS doesn’t provide much guidance. An expense isn’t lavish or extravagant if it is reasonable considering the facts and circumstances.

Expenses will not be disallowed just because they are more than a certain amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Lavish is sometimes defined as a business expense that is significantly higher than what is considered reasonable. Say a company pays triple the market rate for something. That amount may be a lavish or extravagant expense. The portion deemed lavish by the IRS is not tax deductible.

Of course, the mere fact that you might conduct business entertainment at a high-end restaurants or hotels–or even strip clubs–doesn’t mean it’s lavish. Consider some of the World’s Most Extravagant Meals. Yet even if you can legitimately deduct it, that doesn’t mean such spending is smart. Besides, if you are spending in the stratosphere, you might expect the IRS to claim it’s personal.

Justin Timberlake & Jessica Biel reportedly spent $6.5 million on their wedding. There’s no word on whether any of that showed up on their taxes, regardless of which business connections were in attendance. Speaking of expensive meals, what about someone who spent $3.46 million for lunch with Warren Buffett?

That’s expensive even for eight people and even to support title="Glide Memorial Church">Glide Memorial Church in San Francisco. Nevertheless, most of that $3.46M should be deductible, but as a charitable contribution (in excess of the meal value), not as a business expense. Should Warren Buffett’s $3.46M Lunch Be Tax Deductible?

Want a real-life creative example of an attempt at claiming “business expenses?” Ralph Louis Vitale, Jr. took on the IRS in Tax Court claiming he was in the business of writing about prostitution. How did he begin his research? You guessed it. He paid prostitutes in cash, a kind of industry standard. Still, he kept a detailed journal of his numerous “research visits.”

Vitale paid a vanity press $4,375 to publish it. Yet after he had collected only $2,600 in royalties, his publisher went bankrupt. The IRS said this was just a “hobby” and disallowed Vitale’s deductions. The Tax Court ruled that Mr. Vitale did have a profit motive, but with no receipts, he got no deduction.

My advice to Mr. Bieber? Don’t even think about deducting any part of this evening.

You can reach me at This discussion is not intended as legal advice, and cannot be relied upon for any purpose without the services of a qualified professional.

Source: Forbes


iPad Air Giveaway. Win a free iPad Air.

You Might Also Like


Sponsored Update

Update: 11

10 Asian Caves Defining Human History and Development, 34 Amusing Facts To Entertain Your Brain, This Is How You Can Make Homemade Pizza Rolls and more


10 Asian Caves Defining Human History and Development Let?s read about some of the most fascinating Asian caves that define human history.more... 34 Amusing Facts To Entertain Your Brain More random but interesting facts to Indulge your brain!more... This Is How You Can Make Homemade Pizza Rolls Do you like pizza rolls? Of course you do! It?s pizza, but, well, rolled. If you?re t ...
Source:   Full article at: 5 days ago, 8:37pm CDT


Update: 10

Unapproved Justin Bieber Police Escort Draws Scrutiny

Source: Experience Project

Furthermore, it is perfect pertaining to advertising digestion and also decreasing fat, as a result it is the far safer to consume it ...
Source: Experience Project   Full article at: Experience Project 6 days ago, 10:57am CDT

More From the Web

Update: 9

Demi Lovato has ended her Relationship with Selena Gomez

Source: I4U News

Demi Lovato was interviewed recently by Jessica Alba and she was given the option of killing someone. She chose Justin Bieber and Simon Cowell while refraining fr ...
Source: I4U News  Full article at: I4U News 6 days ago, 5:57am CDT

Update: 7

Taylor Swift: Done With Selena Gomez After Latest Justin Bieber Reunion

Source: Hollywood Life

Jelena fans may be thrilled about Justin and Selena’s latest reunion but Sel’s BFF Taylor is f ...
Source: Hollywood Life   Full article at: Hollywood Life 6 days ago, 2:07pm CDT

Update: 6

Justin Bieber and Selena Gomez Went to Bible Class, May Be in Love

Source: Defamer

Justin Bieber and Selena Gomez's on-again, off-again romance—that which gives us something to dream of at night and something to wake for in the morning—seems to be on-again. Or maybe it was quickly on-again, and has resumed being off-again ...
Source: Defamer   Full article at: Defamer 6 days ago, 2:01pm CDT

Update: 5

Demi Lovato Explains Rift with Justin Bieber Ex Girlfriend Selena Gomez

Source: National Ledger

Selena Gomez and her ex boyfriend Justin Bieber may or may not be dating again, however she is still in a rift with fellow pop sta ...
Source: National Ledger   Full article at: National Ledger 6 days ago, 1:31pm CDT

Update: 4

Justin Bieber Posts New Romantic Kiss Pic With Selena Gomez

Source: Hollywood Life

Just when you (and Taylor Swift) thought that Justin and Selena were done for good, the Biebs has won the love of his life back ...
Source: Hollywood Life   Full article at: Hollywood Life 1 week ago, 7:03pm CDT

Update: 3

Venzuelan President Nominates Chavez's Daughter as UN Ambassador

Source: Big Government

In a special event dedicated to support for anti-Israeli elements in Gaza, the Venezuelan government announced that María Gabriela Chávez, the daughter of late Venezuelan dictator Hugo Chávez, would be making her political debut as an ambassador to the United Nations shortly. According to Argentine news outlet Infobae, the younger Chávez will serve as an "alternate ambassador" to the United Nations. Her job, according to Foreign Minister Elías Ja ...
Source: Big Government   Full article at: Big Government Aug 14 2014, 2:03pm CDT

Update: 2

Stress helps wound care — at least if you're a mouse

Source: McKnight's Long Term Care News

Lost in all the recent hubbub about the Ebola virus, Justin Bieber going to anger management class and a guy eating a nursing home resident's pain patch, is breaking news from the exciting world of stress, mice ...
Source: McKnight's Long Term Care News   Full article at: McKnight's Long Term Care News Aug 14 2014, 11:00am CDT

Shopping Deals


<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.




blog comments powered by Disqus

Latest stories

Rear Panels Of 5.5-inch iPhone 6 In Latest Leak
Rear Panels Of 5.5-inch iPhone 6 In Latest Leak
The 4.7-inch iPhone 6 and the unofficially-named ‘iPhone 6L’ will play out like the smartphone version of the iPad mini 2 and iPad Air.
Victoria Beckham takes ALS Ice Bucket Challenge
Victoria Beckham takes ALS Ice Bucket Challenge
Victoria Beckham, wife of David Beckham, also completed the ALS Ice Bucket Challenge that is a viral trend these days.
Samsung Galaxy Note 4 Camera Features revealed
Samsung Galaxy Note 4 Camera Features revealed
The Samsung phablet will feature 16MP, Side Touch, Wide Selfie, and much more.
Nicole Kidman and Jason Bateman do the Ice Bucket Challenge
Nicole Kidman and Jason Bateman do the Ice Bucket Challenge
Actors Nicole Kidman and Jason Bateman did the Ice Bucket Challenge together in a one video while on set of a new movie.

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.