Nicolas Cage’s former Las Vegas home, which had been foreclosed on in the wake of the actor’s tax troubles, has been sold for approximately $4.95 million, according to his real estate broker.

Kenneth Lowman, owner of Luxury Homes of Las Vegas, said Monday he sold Cage’s foreclosed, and now bank-owned, home the first day it was on the market. The 14,306-square foot luxury property is now in escrow. The sale is expected to close on Wednesday.

Cage’s former luxury home boasts a 16-car subterranean garage, an elevator, theatre room, six bedrooms, seven-and-a-half bathrooms, and a full view of the Las Vegas Strip. Cage bought the home in September 2006 for $8.5 million. Since the recession has reduced luxury home prices by up to 50 percent, Lowman sold Cage’s former home for close to the asking price of $4.95 million.

“Conventional homes move in relation to unemployment,” Lowman said in a statement. “The luxury home segment moves in relation to the stock market. The market is back, and it’s not only a trend; these are dollars. Luxury properties are being closed on today for up to 50 percent off the original asking price.”

Cage owes the IRS around $14 million in back taxes and four of his homes have now been foreclosed: two in New Orleans, one in California and one in Las Vegas. Actor Johnny Depp has reportedly offered to assist Cage with his financial problems.

The IRS filed a tax lien for over $6.2 million against Cage in July. More recently, the IRS filed an additional tax lien for $6.7 million for his 2008 taxes.

The actor has been selling off his mansions and other property around the world in an effort to pay off the tax liens. Cage has also sued his ex-manager and accountant, Samuel Levin, accusing Levin of making poor investment choices in risky real estate and failing to pay the actor’s taxes, leading him “down a path toward financial ruin” (see Nicolas Cage Sues Ex-Manager for Not Paying His Taxes). Levin, in turn, has countersued Cage and claimed that he tried to warn the actor against his “compulsive, destructive spending,” and encouraged him to sell off a dozen automobiles and a $1.6 million comic book collection.

Cage recently told People magazine that he is getting “current” with his tax debts. “Over the course of my career I have paid at least $70 million in taxes,” he said in a statement. “Unfortunately, due to a recent legal situation, another approximate $14 million is owed to the IRS. However, I am under new business management and am happy to say that I am current for 2009. All taxes will be paid, including any to-be-determined state taxes.”


Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access