Nerdville Tax Shelter?

redking

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I heard a story yesterday from a fairly knowledgeable guy that Joe B's gear collection is actually owned by the "Nerdville Museum" and is operated as a tax shelter for his rich friends to invest money in for him to acquire all this gear (ie. he actually owns none of it himself personally). Can anyone confirm or deny such a story? :jb:
 

Brek

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sounds like a smart guy, getting some rich dudes to pay for your toys.
 

Grenville

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Is it true? I have no idea.

But it sounds feasible, and possible.

I read years ago about the Eagles guys buying nice guitars each year as tax writeoffs ("tools of our trade").
 

shark

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let him tell you himself but I dont think its any kind of tax shelter its just for guitars and amps of ridiculous worth
 

sws1

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I've heard similar. (Not the part about the "museum", but about the funding sources.)

And he's also stated publicly that some of his bigger ticket items were "co-owned".

Unlikely that anyone who is "investing" is not paying taxes at some point. This is likely setup in a way that he can write off the expense of the collecting business against any profits he makes touring. (Write off expenses when in a high tax bracket...sell off assets when in a lower bracket.)
 

ehb

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Doesn't matter to me at all. Actually none of my business...

Everybody takes tax deductions....unless one is an idiot.
 

judson

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meh..... :dunno:

trying to confirm or figure out other peoples true financial situation arrangements is somewhat impossible or useless unless you are involved directly with it.....usually with nose bleed incomes and assets, there are many maneuvers available.

while joe is buying, selling and playing some of the best guitars and amps ever made.......oh and he has to perform as well
how that is handled for tax purposes.....falls into rats ass territory really..

if he has a tax shelter i can invest in ....let me know if it allows me access to any of his gear, even for just a few hours.....but since i am a thousand-aire, i doubt that would only get me access to a few guitar picks some used guitar strings at best.

:fingersx:
 

redking

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Is it true? I have no idea.

But it sounds feasible, and possible.

I read years ago about the Eagles guys buying nice guitars each year as tax writeoffs ("tools of our trade").
Well yes, every professional musician can write off their gear over time if they use it to earn revenue. For vintage instruments, this may or may not be a good idea because they would likely go up in value, so there would be a "recapture" tax when they are sold on top of capital gains tax. But for basic gear that does not appreciate to any great degree, or even gets used and discarded (cables, speakers, mixers, etc), it is all written off for sure.
 

redking

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I've heard similar. (Not the part about the "museum", but about the funding sources.)

And he's also stated publicly that some of his bigger ticket items were "co-owned".

Unlikely that anyone who is "investing" is not paying taxes at some point. This is likely setup in a way that he can write off the expense of the collecting business against any profits he makes touring. (Write off expenses when in a high tax bracket...sell off assets when in a lower bracket.)
I think it's a great and creative idea if that is what he is doing. The downside for other collectors is all the good shit is being swept up into a small number of huge collections and won't be in circulation for others to use one day. Gibson has taken a cue from Joe and is starting to do this themselves by buying up as many vintage Gibsons they can get their hands on and take them out of circulation.
 

Shelkonnery

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People will have all sorts of tax shelters as they should.

British celebrities like Mick Jagger and Rod Stewart have a time cap for staying in the UK.
They often "have to" spend months abroad on their Paris/LA mansions as to not pay even higher taxes at home in England.

I'm sure this type of thing happens more often than us peasants are aware of.
 

eric ernest

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British celebrities like Mick Jagger and Rod Stewart have a time cap for staying in the UK.
They often "have to" spend months abroad on their Paris/LA mansions as to not pay even higher taxes at home in England

It's why QUEEN bought that studio in Montreux Switzerland in circa 1978.
 

Truth011

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To me this seems like a way for his "FRIENDS" to acquire high end gear and pay as little tax as possible as well. You can't blame anybody for taking advantage of a system rigged for the very wealthy. I'm glad Joe gets access to this quality of gear as we all benefit.
 

Mark_the_Knife

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Let me get the picture right. Some old geezer co-owns a few of Joe's most beautiful and timeless guitars, and gets to fondle them a few times a year?

This is old hat. Hypothetically, if I were to own a Stradivarius and lend it to a lovely violinist, I might be able to sniff it in my Paris mansion.

 

Liam

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Damn it, I was annoyed he had all that cool shit! Now I have to worry he’s paying less tax than me too???

As a percentage? Maybe, maybe not. In outright cash? I'm going to guess he pays quite a bit more.

I've been fortunate that my earnings have increased quite a bit over recent years. While I feel privileged to be able to contribute ever more to the UK national coffers, there are a few break points and bits of tapering where I have had to think, "Hang on, that means over 50% of my earnings are gone in tax!", and one particular year where my tax bill exceeded my take-home earnings by more than 100%. First world problems of course, but it still smarts a bit. I had plenty of years where I genuinely struggled to make ends meet, and still had a decent lump taken from me for tax purposes.

If I could have found a way of turning that tax that seems to be taken quite extravagantly into a share in a 50's Les Paul Standard or 2, I would have enjoyed that loophole. Couldn't knock anyone else if they have found one.

Hope you are well Rhys. You have no need to feel like a loser. You have exquisite taste in guitars, and the opportunity to enjoy a few of them. To quote David St. Hubbins, "I envy us!"

Best

Liam
 

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