The Leaving Las Vegas and Honeymoon in Vegas star's foreclosed, 14,300-sq.-ft. home in the Nevada tourist destination may have sold for $4.95 million on its first day on the market, but Cage paid $8.5 million for it in 2006, the Associated Press reports.
The residence otherwise screams Vegas splendor: six bedrooms, seven-and-a-half baths, a 16-car subterranean garage, a theater and a glorious view of the city's downtown Strip.
Cage, who has recently changed business managers, currently owes the IRS approximately $14 million. Much of his money troubles comes from his real-estate dealings. In the past few years his investments have included 15 palatial homes in Germany, the U.K. and New Orleans. He also paid $3 million for a Bahamian island.
Cage, 46, earns $20 million per film, and his latest, the supernatural thriller Season of the Witch, opens March 19. Cage has assured PEOPLE "all taxes will be paid."