Danny Trejo paid off a massive chunk of the tax debt he owes to the IRS and the State of California after selling off one of his homes, In Touch can exclusively report.
Danny, 80, and his legal team provided the judge with an update in his ongoing bankruptcy late last year. The legendary actor filed for Chapter 11 in February 2023. In his petition, Danny listed assets worth $2.2 million and liabilities totaling $3.6 million.
The majority of the entertainer’s debt came from back taxes. His main asset was a $1.2 million home and another worth $750,000.
At the time, Danny said he mistakenly claimed deductions on his taxes over the years, which led to the debt. In his new filing, obtained by In Touch, Danny explained that he was able to pay off $400,000 owed in back taxes from the sale of his second home in Arleta, California.
The three-bedroom, two-bathroom home sold in April for $828,000. Danny used the proceeds from the sale to pay $307,000 to the IRS and another $93,000 to the State of California Franchise Tax Board.
Danny said he has made timely payments on his repayment plan. He has paid another $101,668 to the IRS under the plan and $12,844 to the Franchise Tax Board.
His lawyer added, “In sum, Mr. Trejo has paid $634,155 in pre-Petition tax obligations in accordance with the Plan. [Danny’s] accountant filed the bankruptcy estate tax return for 2023 and the amount owed thereunder were paid in full and [Danny] has filed and paid his non-estate personal income taxes for 2023 and paid all amount due.”
Per his plan, Danny agreed to pay quarterly installments from October to January 2028. Each quarterly estimate is estimated to be around $101,000. Danny owes the IRS over $1.1 million and $142,000 to the Franchise Tax Board.
In his new filing, in October 2024, Danny said he has also paid $15,000 owed to LA County for property taxes, has made all mortgage payments and settled a $303,000 debt to Barclays on a mortgage via the home sale.
In addition, he said he is up to date on his payments to Toyota Motor. His lawyer said he expects Danny to file for a discharge in the next couple of months. In his bankruptcy petition, Danny listed his extensive car collection as part of his assets.
The collection includes: a 1942 Chevrolet Master Deluxe, 1976 Cadillac Seville 4D, 1961 Ford Truck, 1997 Cadillac Eldorado, 1998 Cadillac Eldorado, 2001 Cadillac Eldorado, 2005 Ford Truck, 2006 Range Rover, 2006 Mercedes Benz and a Harley Davidson motorcycle.
Danny’s taco and donut shops are not a part of his personal bankruptcy. At one point, the writers’ and actors’ strikes caused Danny issues in his bankruptcy.
In July 2023, his lawyer noted, “Mr. Trejo’s acting career has over three decades and he continues to be in popular demand for films and other productions and the Debtor contends that therefore is a reasonable likelihood that he will make all payments under the Plan. The entertainment industry, however, is uncertain by its nature and Mr. Trejo’s income is not guaranteed. The Writers Guild of America strike that commenced on or about May 2, 2023 and the Screen Actors Guild – American Federation of Television and Radio Artists strike that commenced on July 14, 2023 have affected Mr. Trejo’s income in the near term.”
The strikes ended months later, and Danny has had no issues with his payments since. The case is ongoing.
