If you have a pulse and an Internet connection, you remember when Drake took his $996,631.90 music video budget for the song “God’s Plan” and gave it all away.
In the 2018 video, which now has almost a billion views on Youtube, the Canadian rapper gives away nearly $1 million in cash, scholarships, and gifts to various people and organizations in Miami. (That million was originally allocated by Drake’s record label, Cash Money / Young Money Records, for making the music video.)
Some of the gifts included $50,000 to a woman’s shelter, stacks of cash and new cars to everyday people, and $20,000 to the Miami Fire Department, among others.
“God’s Plan” was a hit on the charts. It went on to win Best Rap song at the Grammys. Watching the music video, you can’t help but feel good and hopeful and positive. (If there’s one thing about Drake he’s all about those #feels.)
It also revealed more about Drake’s values: He helps others. He relates to everyday people and his fans. And most importantly, he prioritizes his love for his bed and his mother above all else.
On Instagram, Drake even said the music video was “the most important thing I have ever done in my career.”
But with tax season upon us, one important question does come to mind: What are the tax implications of this million dollar giveaway? For Drake, his record label, and the gift recipients?
First, some assumptions…
We’re guessing Drake didn’t take a fee for his part in the music video (i.e. no income for this). And we’re assuming he didn’t put up any of his own personal money as part of the $1 million. Rather, everything indicates that it came from his label, Cash Money Records. Drake was simply the middle-man who handed that money away. So Drake, personally, wouldn’t be affected on this million bucks.
