African-American business mogul and multi-industry creative, Kanye West, is grappling with another financial setback as documents reveal that his clothing company, Yeezy Apparel, LLC, is burdened with more than $1 million in unpaid taxes.
The revelation comes at a time when West has been facing a decline in his fortune, dropping from $2 billion to $400 million after losing partnerships with Adidas and other brands due to anti-Semitic remarks.
More than a year after Adidas severed its multiyear contract with West due to his anti-Semitic comments — a move that saw his fortune plunge by $1.6 billion — the rapper-turned-business mogul has issued an apology to the Jewish community.
Yeezy’s fiscal woes: $934K in unpaid taxes unearthed; West’s financial strain deepens
Recent documents disclose that Yeezy Apparel, LLC, presently faces four active tax liens dating back three years, accumulating a substantial total of $934,033.56 in unpaid business taxes. This significant financial liability adds to West’s challenges, amplifying the strain on his resources.
In addition to the tax challenges faced by Yeezy Apparel, West is confronted with property tax delinquencies on two homes jointly owned with his ex-wife Kim Kardashian.
The State of California’s Franchise Tax Board issued a demand in March 2023, amounting to $319,356.58, including penalties and interest. This claim pertains to unpaid taxes spanning from October 2021 to March 2022, further contributing to the rapper’s financial woes.
West’s Hollywood Hills property sale targets tax efficiency
As part of a strategic move to alleviate some of his tax liabilities, in August 2023, West listed his concrete Hollywood Hills mansion for sale at $3.69 million.
The property, purchased in 2003 for $1.75 million, offers three bedrooms and four bathrooms, featuring a modern concrete exterior and stylish interior elements.
West aims to capitalize on the potential transaction, potentially pocketing a gross profit of $1.94 million as he navigates through this challenging financial period.