World News – United States – Trump’s taxes show chronic losses and years of tax evasion

0

The Times obtained tax information from Donald Trump spanning more than two decades, revealing distressed properties, vast write-offs, an audit battle and hundreds of millions in debt due

The Times obtained tax information from Donald Trump spanning more than two decades, revealing distressed properties, vast write-offs, an audit battle, and hundreds of millions of debts falling due

Donald J Trump paid $ 750 in federal income tax the year he won the presidency In his first year in the White House he paid another $ 750

He had paid no income tax in 10 of the previous 15 years in large part because he said he lost a lot more money than he earned

As the president leads a re-election campaign that polls say he stands to lose, his finances are under strain, beset with losses and hundreds of millions of dollars in upcoming debt that he has personally guaranteed Ten-year audit battle with Internal Revenue Service over legitimacy of $ 72 also hangs over him$ 9million in tax refund he claimed and received after claiming huge losses Unfavorable ruling could cost him more than $ 100million

The tax returns that Mr. Trump has long fought to keep private from telling a fundamentally different story from the one he sold to the American public His IRS reports portray a businessman who cashes in the hundreds of millions of dollars a year while racking up losses chronicles he aggressively uses to avoid paying taxes Now, with his growing financial challenges, records show he increasingly relies on making money with companies that put him in conflict of interest potential and often direct with his work as president

The New York Times obtained tax return data spanning more than two decades for Mr. Trump and the hundreds of companies that make up his business organization, including detailed information about his first two years in office It does not include his personal returns for 2018 or 2019 This article offers an overview of the Times’ findings; additional articles will be published in the coming weeks

The Returns are among the most sought after and speculated recordings in recent memory In Mr Trump Almost Four Years in Power and through its decades endlessly fascinating in the eyes of the public journalists, prosecutors, opposition politicians and conspirators have, with limited success, sought to dig into the puzzles of its finances By their very nature, filings will leave many questions unanswered, many questioners unanswered They include information that M Trump revealed to jeRS, not the findings of an independent financial review They report that Mr. Trump owns hundreds of millions of dollars in valuable assets, but they don’t reveal his true wealth Nor do they reveal unreported ties to Russia

In response to a letter summarizing the Times’s findings, Alan Garten, an attorney for the Trump organization, said that « most, if not all, of the facts appear to be inaccurate » ?? and demanded the documents they relied on After The Times refused to provide the documents, in order to protect his sources, Mr. Garten only directly contested the amount of taxes Mr. Trump had paid

Over the past decade, President Trump has paid tens of millions of dollars in personal taxes to the federal government, including millions in personal taxes since his candidacy was announced in 2015, â ?? ?? Mr. Garten said in a statement

With the term « personal taxes », « however, M Garten seems to confuse income taxes with other federal taxes M Trump paid â ???? Social Security, Medicare and Taxes for His Household Employees Mr. Garten also asserted that part of what the president owed was… paid for with tax credits,… a misleading characterization of credits, which lower the bill. income tax of a business owner as a reward for various activities, such as historical preservation

The tax data the Times examined provides a roadmap from disclosures, write-offs for the cost of a criminal defense attorney and a mansion used as a family retreat to full accounting of the millions of dollars the president received from the Miss Universe 2013 contest in Moscow

Along with the financial documents and related legal filings, the documents offer the most detailed look to date inside the president’s business empire They reveal the void, but also the magic, behind the image of the self-made billionaire sharpened thanks to its star lighting â ???? The Apprenticeâ ???? a???? which helped propel him to the White House and which still underpins the loyalty of many in his base

In the end, M Trump was better off playing a business mogul than one in real life

– The apprentice, – with the licensing and endorsement deals that flowed from his growing fame, brought Mr. Trump a total of $ 427 million, The Times analysis of the records found He invested much of that in a collection of businesses, mostly golf courses, which in the years that followed steadily devoured money just like the money he secretly received from his father funded a series of quixotic budget overruns that led to his collapse in the early 1990s

Indeed, his financial situation when he announced his presidential candidacy in 2015 lends some credibility to the idea that his long-term campaign was at least in part a gamble to revive the marketing of his name.

As legal and political battles over access to his tax returns escalated, Mr. Trump has often wondered aloud why anyone would even want to see them – There is nothing to be learned from them, – he told The Associated Press in 2016 There is much more useful information, he said, in the annual financial disclosures requested of him as chairman which he highlighted as proof of his mastery of a flourishing and immensely profitable commercial universe

In fact, these public deposits give a distorted picture of his financial situation, as they simply indicate income and not profit In 2018, for example, Mr. Trump announced in his disclosure that he had earned at least $ 434 9 million Tax records paint a very different picture of his bottom line: $ 47 4 million in losses

Tax registers do not have the specificity of evaluating the legitimacy of each business expense M Trump claims to reduce his taxable income – ???? for example, without any explanation in his statements, the overhead and administrative costs of his Bedminster New Jersey golf club increased fivefold from 2016 to 2017, and he once boasted that his ability to get by without paying tax – makes me smart, – as he put it in 2016 But the returns, according to his own account, have undermined his claims of financial insight, showing he is simply investing more money in many companies than he does not subscribe

The image that emerges perhaps most clearly from the mountain of figures and tax schedules prepared by Mr. Trump’s accountants are businessman-president in tightening financial grip

Most of Mr. Trump’s major businesses – from his constellation of golf courses to his conservative magnet hotel in Washington report losing millions, even tens of millions of dollars year after year

His income from « The Apprentice » and licensing deals is drying up, and several years ago he sold almost any inventory that could have helped him plug holes in his distressed properties. p>

And over the next four years, over $ 300 million in loans … bonds for which he is personally responsible – will mature

In this context, the archives go much further towards revealing the real and potential conflicts of interest created by Mr. Trump’s refusal to divest his business interests in the White House His properties have become bazaars for raising money directly from lobbyists, foreign officials and others who are looking for time, access or a favor; first-time records show precise dollar figures on these transactions

At the Mar-a-Lago Club in Palm Beach, Fla., a flood of new members starting in 2015 allowed him to pocket an additional $ 5 million per year from the company In its golf resort of Doral near Miami, roofing material maker GAF spent at least $ 1.5 million in 2018 even as its industry pressured the Trump administration to «  blatantly  » roll back federal regulations in 2017, the Billy Graham Evangelistic Association paid at least $ 397,602 to the Washington hotel, where the group hosted at least one event during its four-day World Summit in Defense of Persecuted Christians

The Times was also able to take the most comprehensive measurement to date of the president’s income from overseas, where he holds ultimate power over US diplomacy. When he took office, Mr. Trump has said he will not pursue any new overseas deals as president Despite this, in his first two years in the White House, his overseas income totaled $ 73 million. much of that money came from its golf properties in Scotland and Ireland, some came from licensing deals in countries with authoritarian-leaning rulers or thorny geopolitics for example, 3 million dollars from the Philippines, 2 dollars 3 million from India and 1 million dollars from Turkey

He said he paid taxes, in turn, on several of his overseas businesses In 2017, the president’s $ 750 contribution to US government operations was eclipsed by the $ 15,598 that he or his companies paid in Panama, the 145,400 dollars in India and the 156,824 dollars in the Philippines

Mr U of TrumpS the payment, after factoring in his losses, was roughly equivalent, in unadjusted dollars for inflation, to another presidential tax bill revealed almost half a century ago In 1973, the Providence Journal reported that after a charitable deduction for donating his presidential papers, Richard M Nixon paid $ 792 81 in 1970 with an income of around $ 200,000

Mr Leak Nixon’s Small Tax Payment sparked a precedent-setting uproar: From now on, presidents and presidential candidates would make their tax returns accessible to the American people

The contents of thousands of personal and business tax records fill financial details that have been withheld for years

– I would love to do that, â ???? Mr Trump said in 2014 when asked if he would free his taxes if he ran for president He’s been backing down since

When he introduced himself, he said he could make his taxes public if Hillary Clinton did the same with the emails deleted from her private server – ???? an echo of his taunt, while fanning birther fiction, that he could release the statements if President Barack Obama released his birth certificate He once bragged that his tax returns were « very important » and – beauune ???? But make them public? – It’s very complicated ???? He often claims he can’t do it while checking out an argument refuted by his own jeRS the commissioner When prosecutors and congressional investigators issued subpoenas for his return, he exercised not only his private attorneys but also the power of his Department of Justice to block them up. ‘to the Supreme Court

Mr. The elaborate dance and Trump’s challenge only stirred suspicion about secrets that might be hiding in his taxes Is there any financial clue to his deference to Russia and its president, Vladimir V Putin? Did he write off the silent cash payment to pornographic star Stormy Daniels in the days leading up to the 2016 election as a business expense? Did a secret source of money fuel his buying frenzy that began in the mid-2000s?

The Times reviewed and analyzed data from thousands of personal and business income tax returns for the period 2000 to 2017, as well as additional tax information from other years The treasury included years of compensation information employee and records of cash payments between the president and his businesses, as well as information about ongoing federal audits of his taxes This article also draws on dozens of interviews and previously unreported material from other sources, both public and confidential.

All information obtained by The Times was provided by sources who have legal access to it Although most of the tax data has not been made public before, the Times has been able to verify parts of it by comparing it with publicly available information and confidential records previously obtained by The Times

To dive into the archives is to see up close the complex structure of the president’s business interests and the depth of its entanglements What is popularly known as the Trump Organization is actually a collection of over 500 entities, virtually all of which are 100% owned by Mr. Trump, many bear his name For example, 105 of them are a variation of the name Trump Marks, which he uses for licensing deals

Transcripts of his main federal tax form, 1040, from 1985 to 1994 were obtained by The Times in 2019 They showed that for many years Mr. Trump lost more money than almost any other individual U.S. taxpayer.Three pages of his 1995 statements, sent anonymously to The Times during the 2016 campaign, showed Mr. Trump had declared losses of $ 915 million, giving him a tax deduction that could have allowed him to avoid federal income tax for nearly two decades Five months later, journalist David Cay Johnston obtained two pages of M Trump’s comebacks of 2005; that year his fortune had rebounded to the point that he was paying taxes

Vast new wealth of information analyzed by The Times complements the recurring pattern of rise and fall that has defined the president’s career Even so, it has its limits

Income tax returns, for example, do not record equity in Mr Trump’s Case, a subject of much posture and almost as much debate The documents paint a picture of a great loss of money, but although returns bring in debt, they often do not identify lenders

The data does not contain any new revelation about the $ 130,000 payment to Stephanie Clifford, the actress who plays Stormy Daniels – the subject of the Manhattan District Attorney’s subpoena for M Trump’s tax return and other financial information Mr. Trump admitted to reimbursing his former attorney, Michael D Cohen, who made the gain, but documents obtained by The Times did not include any itemized payments to Mr. Cohen The amount, however, could have been incorrectly included in legal fees written off as business expenses, which should not be itemized on tax returns.

No topic has sparked more intense speculation about M Trump’s finances as his link to Russia While tax records reveal no previously unknown financial link and, for the most part, do not have the specificity required to do so they shed new light on the money behind the 2013 Miss Universe pageant in Moscow, a subject of enduring intrigue due to subsequent investigations into Russian interference in the 2016 election

Records show the pageant was the highest-grossing Miss Universe during M Trump’s time as a co-owner, and he generated a personal salary of $ 2.3 million – made possible, at least in part, by the Agalarov family, who would later help organize the infamous 2016 reunion between Trump campaign officials in search of â € “ dirtâ ???? on Mrs Clinton and a Russian lawyer linked to the Kremlin

In August, the Senate Intelligence Committee released a report that thoroughly examined the circumstances of the Moscow show and found that as recently as February, investigators had subpoenaed Russian singer Emin Agalarov, who was involved in its planning m Agalarov’s father, Aras, a billionaire who boasts of having close ties to Mr. Putin, was M Trump’s partner in the event

The committee interviewed senior Miss Universe executive Paula Shugart, who said the Agalarovs had offered to endorse the event; their family business, Crocus Group, paid a license fee of $ 6 million and an additional $ 6 million in expenses But while the competition turned out to be a financial loss for the Agalarovs – ???? they only got $ 2 million SP Shugart told investigators it was « one of the most lucrative deals » Miss Universe organization has never done, report says

This is confirmed by the tax records They show that in 2013 the contest brought in $ 31.6 million in gross receipts â € “ the highest since at least the 1990s? allowing M Trump and his co-owner, NBC, will share $ 4.7 million in profits By comparison, Mr. Trump and NBC shared losses of $ 2 million from the year’s contest before the Moscow event and $ 3 million from the year after

Losses reported by M companies Trump owns and leads helped eliminate tax bills on hundreds of millions of dollars in celebrity income

While M Trump toured the country in 2015 describing himself as uniquely qualified to be president because he was « really rich » and had… built a great business, â ???? his accountants back in New York were busy putting the finishing touches on his 2014 tax return

After adding up all of M’s profits and losses Trump’s various efforts on Form 1040, the accountants came to line 56, where they had to enter the total income tax the candidate had to pay They needed space for a single figure

To Mr Trump, that bottom line must have sounded familiar It was the fourth year in a row that he had not paid a dime in federal income tax

Mister Trump’s income tax avoidance is one of the most striking findings in his tax returns, especially given the vast wave of income detailed elsewhere in these returns

Mister Trump’s net income from his fame – his 50 percent share of â ???? The Apprentice, â ???? as well as the riches poured into him by dozens of suitors paying to use his name – ???? totaled $ 427 4 million through 2018 $ 176 plus 5 million in profit came to it from its investment in two highly successful office buildings

So how did he escape almost all taxes on this fortune? Even the effective tax rate paid by the richest 1% of Americans could have made them pay over $ 100 million

The answer lies in a third category of M Trump’s Efforts: The Businesses He Owns and Runs Himself The collective and persistent losses he reported on their part largely absolved him from paying federal income tax on the $ 600 million dollars from « The Apprentice, » brand agreements and investments

This equation is a key part of the alchemy of M Trump’s Finances: Using His Fame’s Proceeds to Buy and Support Risky Businesses, Then Use Their Losses to Avoid Taxes

Throughout his career, M Trump’s business losses have often accumulated in larger sums than could be used to cut taxes on other income in a single year But the tax code offers a workaround: With certain restrictions, business owners can carry over remaining losses to reduce taxes in years to come.

This layout was the background music for M Trump’s life As the Times’ previous report on his 1995 comeback showed, the losses of nearly $ 1 billion from his collapse in the early 1990s generated a tax deduction that he could use for 18 years old

New tax returns show that Mr. Trump burned the last billion dollar tax-cutting power in 2005, just as a torrent of entertainment wealth began to come its way after « The Apprentice » debut the year before

From 2005 to 2007, money from license agreements and endorsements filled M Trump’s bank accounts with $ 120 million in pure profit No longer having any losses from the previous year to reduce his taxable income, he paid large federal income taxes for the first time in his life: a total of $ 70 1 million

As his celebrity income increased, Mr. Trump went on a shopping spree unlike any he had ever had since the 1980s, when greedy banks and his father’s wealth allowed him to buy or build the casinos, planes, yacht and old hotel that would soon bring him down

When « The Apprentice » premiered, Mr. Trump had only opened two golf courses and renovated two others By the end of 2015 he had 15 courses and was turning the Old Post Office building in Washington into a Trump International Hotel But rather than making it richer, the tax files reveal it as never before, each new acquisition only fed the project down on its results.

Consider the results of its largest golf resort, Trump National Doral, near Miami Mr. Trump bought the resort for $ 150 million in 2012; up to 2018, his losses totaled $ 162.3 million He injected $ 213 million in new money into Doral, tax records show, and a $ 125 million mortgage balance matures in three years

His three courses in Europe â ???? two in Scotland and one in Ireland reported a combined $ 636 million in losses

Overall, since 2000, M Trump reported losses of $ 315.6million on golf courses that are his prized assets

Despite all its looks Trumpworld, its hotel in Washington, opened in 2016, did not do much better Its tax records show losses of $ 55 until 20185 million

And Trump Corporation, a real estate services company, said it has lost $ 134 million since 2,000m Trump has personally funded the losses year after year, marking his cash injections as a loan with an ever-growing balance, according to his tax files In 2016, he gave up on being reimbursed and turned the loan into a cash contribution

Mr. Trump has often postulated that his losses are more accounting magic than real money at the door

Last year, after The Times published details of his 1980s and 1990s tax returns, it attributed the red ink to depreciation, which it said in a tweet would show  » losses in almost all cases ” ? and that – a lot was not monetaryâ ????

Depreciation, however, is not a magic wand this is the real money spent or borrowed to buy buildings or other assets that are expected to last for years.These costs should be charged to and deducted over the useful life of the asset. Even so, the rules present particular advantages for real estate developers like M Trump, who is allowed to use his property losses to reduce his taxable income from other activities

What are M’s tax records Trump’s businesses show, however, that he lost some of his fortune even before depreciation was factored into All three European golf courses, the Washington hotel, Doral and Trump Corporation said they lost. a total of $ 150 3 million from 2010 to 2018, not including depreciation charges

To see what a successful business looks like, depreciation or not, look no further than M’s Trump’s wallet he doesn’t manage

After the Trump-branded mini-town plans on Manhattan’s Far West Side failed in the 1990s, Mr. Trump’s stake was sold by his partner to Vornado Realty Trust m Trump opposed the sale in court, saying he was not consulted, but ended up with a 30% stake of two valuable office buildings owned and operated by Vornado

His profit share through the end of 2018 stood at $ 176.5 million, with depreciation factored in. He never had to invest more money in the partnership, tax records show

Among the companies he runs, Mr. Trump’s first hit remains his best Trump Tower retail and commercial space, completed in 1983, has reliably generated over $ 20 million in profit per year, totaling $ 336 3 million since 2000 who have greatly contributed to keeping it afloat

Mr. Trump has a proven track record in the rigidity of his lenders But tax returns reveal he hasn’t repaid much more money than previously known: a total of $ 287 million since 2010

The jeRS considers debt forgiveness income, but Mr. Trump was able to avoid taxes on much of that money by reducing his ability to report future business losses.Otherwise, he took advantage of a provision in the Great Recession bailout that allowed income to be completely deferred debt canceled for five years, then spread evenly over the next five years He declared the first 28 $ 2 million in 2014

Again, most of his business losses absolved his tax liability He paid no federal income tax for 2014

Mr. Trump was periodically forced to pay a parallel income tax known as the alternative minimum tax, created as a thread to prevent the wealthy from using huge deductions, including business losses, to completely clear their tax obligations

Mr. Trump paid alternative minimum tax in seven years between 2000 and 2017 a total of $ 3 million, excluding refunds he received after filing For 2015, he paid $ 641,931, his first federal income tax payment since 2010

By moving into the Oval Office, his tax bills quickly returned to shape His potential taxable income in 2016 and 2017 included $ 24.8 million in profit from sources related to his celebrity status and $ 56.4 million. for loans he has not repaid The dreaded alternative minimum tax would only allow his business losses to wipe out part of his liability

Each time, he asked for an extension to deposit his 1040; and each time he made the required payment to the IRS for any income taxes he might owe – $ 1 million for 2016 and $ 4 million for 2017 But pretty much all of that liability was taken away when he finally filed, and most of the payments were deferred to cover potential taxes in years to come.

To cancel tax invoices, M Trump used $ 9.7 million in corporate investment credits, at least part of which was related to the renovation of the Old Post Office hotel, which received a tax break for historic preservation although he had more credits that enough not to owe any tax, its accountants seem to have made a provision for a small tax payable for 2016 and 2017

When they got to line 56, income taxes owed, the amount was the same each year: $ 750

â ???? The Apprentice ???? created what was possibly M’s biggest tax bite Trump’s life During the Great Recession bailout, he demanded reimbursement

Testifying before Congress in February 2019, the President’s former personal counsel, Mr. Cohen, recalled M Trump showed him a huge check from the US Treasury a few years earlier and thought – he couldn’t believe how stupid the government was to give someone like him so much moneyâ ????

In fact, confidential documents show that as of 2010, he claimed and received an income tax refund totaling $ 72 9 million â € “ all federal income tax he paid from 2005 to 2008, plus interest

The legitimacy of this reimbursement is at the heart of the audit battle he has been waging for a long time, out of public view, with the IRS

The tapes the Times reviewed correspond to how Mr. Trump has repeatedly cited, without explanation, an ongoing audit as the reason for refusing to release his tax returns.He alluded to it as recently as July on Fox News, when he told Sean Hannity: ‘They treat me horribly, jeRS, horriblyâ ????

And although the files do not present all the details of the audit, they correspond to his lawyers… ???? statement during the 2016 campaign that audits of her returns for 2009 and subsequent years remained open and involved – transactions or activities that were also reported on 2008 and earlier returnsâ € ”

Mr. Trump reaped this rebate windfall by declaring huge business losses a total of $ 1.4 billion from its core business for 2008 and 2009 â € “ that tax laws had prevented him from using in previous years

But to turn that long arc of failure into a giant refund check, he relied on skillful bookkeeping work and an unwitting gift from an unlikely source. m Obama

Business losses can work like a tax evasion coupon: a dollar lost to a business reduces a dollar of taxable income elsewhere The types and amounts of income that can be used in a given year vary depending on the tax status of the owner But some losses can be saved for later use, or even used to claim a refund of taxes paid in a previous year

Until 2009, these vouchers could be used to clear taxes going back only two years But in November the window was more than doubled by a little-noticed provision in a Bill M Obama signed as part of the effort to recover from the Great Recession Business owners can now claim full refunds of taxes paid in the previous four years, and 50% of those in the previous year

Mr. Trump paid no income tax in 2008 But the change meant that when he filed his taxes for 2009 he could claim a refund of not just the $ 133 million he paid in 2007, but also the combined $ 569 million paid in 2005 and 2006, when « The Apprentice » created what was probably the biggest tax grab of his life

Records examined by The Times indicate that Mr. Trump filed the first of multiple installments of his refund several weeks later in January 2010 This triggered what tax professionals call a « quick refund » a check processed in 90 days on an interim basis, pending an audit by the IRS

His total federal tax refund would eventually reach $ 70 1 million, plus $ 2,733,184 in interest. He also received $ 21 million in state and local refunds, which often rely on federal deposits

Refunds require approval from IRS auditors and an opinion from the Congressional Joint Committee on Taxation, a bipartisan group best known for examining the impact of tax law The tax law requires the committee to weigh in on all reimbursements over $ 2 million to individuals

Records show that the results of an audit of M Trump’s refund was sent to the joint committee in the spring of 2011 A deal was reached in late 2014, the documents say, but the audit resumed and expanded to include Mr. Trump’s returns from 2010 to 2013 In the spring of 2016, with Mr. With Trump closing in on the Republican nomination, the case has been referred to the committee It stood there, unsolved, with the statute of limitations repeatedly pushed back

The precise reason the case is stalled is unclear But experts say this suggests the gap between the sides remains wide If negotiations stalled, the case would be referred to court federal, where it could become a matter of public domain

The dispute can relate to a single complaint which jumps from M’s page Trump’s 2009 tax return: A declaration of over $ 700 million in business losses that he had not been allowed to use in previous years Releasing that giant tax evasion coupon allowed him to receive some or all of the full refund

The material obtained by The Times does not identify the company or companies that generated these losses But the losses were of a type that can only be claimed when the partners give up their interest in a company and in 2009, M Trump parted ways with a money-losing giant: his bankrupt Atlantic City casinos

After M Trump’s bondholders rejected his offer to buy them back, and with a third round of bankruptcy in just a week, Mr. Trump announced in February 2009 that he was stepping down from the board

– If I’m not going to run it, I don’t want to be involved in it, – he told The Associated Press – I’m one of the biggest developers in the world I’ve got a lot of money and lots of places to goâ ????

On the same day, he informed the Securities and Exchange Commission that he had « determined that his partnership interests are worthless and have no potential to regain value » and was – hereby relinquishing – its stake

Language was crucial Mr. Trump was using the precise wording of IRS rules governing the most beneficial, and perhaps aggressive, method for business owners to avoid taxes when they separate from a business

/ p>

A partner who leaves a business with nothing – what tax laws call abandonment – may suddenly report all the losses on the business that could not be used in previous years. But there are some catches, including this one: abandonment is essentially an all-or-nothing proposition If the jeRS learns that the owner has received something of value, allowable losses are reduced to just $ 3,000 per year

And M Trump appears to have received something When the casino’s bankruptcy ended, he got 5% of the shares in the new company Documents examined by the Times are not clear whether Mr. Trump’s refund request mirrored his public declaration of abandonment If so, that 5% could put his entire refund in question

If the listeners ultimately refuse to M Trump to $ 72.9 million in federal reimbursement, he will be forced to return that money with interest, and possibly penalties, a total that could exceed $ 100 million.He could also be ordered to return national and local reimbursements based on the same complaints

In response to a question about the audit, Mr. Garten, the attorney for the Trump organization, said the facts cited by The Times were incorrect, without citing details He wrote, however, that it was « illogical » say Mr Trump had not paid taxes during those three years simply because the money was refunded afterwards

– While you claim that President Trump has paid no taxes in 10 of the previous 15 years, â ???? Mr Garten said: – you also claim that President Trump has demanded a massive refund of tens of millions for the taxes he actually paid These two claims are totally incompatible and in any event not supported by the factsâ ????

The House Democrats who are in pursuit of Mr. Trump’s tax returns probably have no idea that at least some of the documents are in a Congressional office building George Yin, former chief of staff on the parity committee, said any identifying information about taxpayers examined was closely owned by a handful of staff attorneys and was rarely shared with politicians assigned to the committee

It is possible that the case was suspended because Mr. Trump is president, which would raise the personal stakes of re-election If Fox’s recent interview is any indication, Mr. Trump seems increasingly agitated about this

– It’s a shame what happened, – he told M Hannity â ???? We made a deal Actually it was â ???? I guess it was even signed. And once I ran, or once I won, or somewhere a long time ago it was like, “Well let’s start one over ???? It’s a shameâ ????

Help reduce M Trump’s tax bills are from unidentified consultants fees, some of which may correspond to payments received by Ivanka Trump

Examining the tax records of the Trump Organization, a curious trend emerges: between 2010 and 2018, Mr. Trump waived some $ 26 million in unexplained consultation fees as a business expense in almost all of its projects

In most cases, fees were about a fifth of his income: in Azerbaijan, Mr. Trump raised $ 5 million on a hotel deal and brought in $ 1 million in consulting fees, while in Dubai it was $ 3 million with fees of $ 630,000, and so on. / p>

Mysterious large payments under trade deals can set off red flags, especially in places where bribes or bribes to middlemen are commonplace But it doesn’t there is no evidence that M Trump, who primarily concedes his name to other people’s plans and is not involved in obtaining government approvals, has engaged in such practices

Rather, there seems to be a closer to home explanation for at least some of the charges: M Trump reduced his taxable income by treating a family member like a consultant, then deducting the fees as a cost of doing business

« Consultants » are not identified in tax records But evidence of this arrangement was gathered by comparing confidential tax records to financial disclosures filed by Ivanka Trump when she joined White House staff in 2017 SP Trump said she received payments from a consulting firm she co-owned, totaling $ 747,622, which exactly matched the consulting fees claimed as tax deductions by the Trump Organization for hotel projects in Vancouver and Hawaii

Ms Trump had been a senior executive at Trump companies who received profits and paid consulting fees for both projects which means she appears to have been treated as a consultant on the same hotel contracts that she helped manage as part of her work at her father’s business

Employers can deduct consulting fees as a business expense and avoid withholding taxes that apply to wages To claim the deduction, the consulting agreement must be an « ordinary and necessary » part of running the business, with reasonable and market-based fees, according to IRS The recipient of the fees is still required to pay income tax

The jeRS has pursued civil penalties against some business owners who devised schemes to avoid taxes by paying exorbitant fees to related parties who were not in fact independent contractors A tax justice case from 2011 focused on the IRS – the denial of nearly $ 3 million in deductions for consulting fees that partners at an Illinois accounting firm paid themselves through the companies they created The court found that the partners had structured the fees to distribute the profits and not to compensate for the servicesâ € ”

There is no indication that the IRS questioned M Trump’s practice of deducting millions of dollars in counseling fees If the payments to his daughter were compensation for the work, it’s unclear why Mr. Trump would do it in this form, other than to reduce his own tax debt.Another, legally more perilous possibility is that the fees were a way of transferring property to his children without incurring donation tax

A Times investigation in 2018 found that Mr. Trump’s late father, Fred Trump, used a number of legally dubious schemes decades ago to evade taxes on gifts on the millions of dollars he transferred to his children It is not possible to discern from this new collection of tax records whether intra-family financial maneuvers were a motivating factor

However, the fact that some of the consultation fees are identical to those reported by Mr. Trump’s daughter raises question of whether this was a mechanism the president used to compensate his adult children involved in his business Indeed, in some cases where high fees were claimed, those with direct knowledge of the projects did not know of any external consultant who would have been paid.

On the failure of the hotel deal in Azerbaijan, which was plagued with suspicion of corruption, a lawyer for the Trump organization told the New Yorker the company was flawless because it was simply a grantor license and had no important role, adding: â ???? We haven’t paid anybody any money ???? Yet the tax records of three Trump LLCs involved in this project show deductions for consulting fees totaling $ 1 million that were paid to someone

In Turkey, a person directly involved in the development of two Trump towers in Istanbul expressed bemusement when asked about the project’s consultants, telling The Times that there had never been a consultant or another third in Turkey paid by the Trump organization But tax records show regular deductions for seven-year consulting fees totaling $ 2 million

Ms Trump revealed in her public record that the fees she was receiving were paid through TTT Consulting LLC, which she said provided consulting, licensing and management services for real estate projects. Incorporated in Delaware in December 2005, the company is one of several Trump related entities with some variation of TTT or TTTT in the name which appears to refer to members of the Trump family

Like her brothers Donald Jr and Eric, Ms. Trump was a long-time employee of the Trump organization and a senior executive for more than 200 Trump companies that have licensed or managed hotels and resorts Tax records show the three siblings each received a salary from their father’s company around $ 480,000 a year, rising to around $ 2 million after M Trump became president – if Mrs. Trump no longer receives a salary What more, Mr. Trump said children were intimately involved in negotiating and managing his plans when asked in a 2011 court testimony who he relied on to handle important details of his licensing deals, he only named Ivanka, Donald Jr and Eric

On Ms. Trump’s now-defunct website, which explains her role in the Trump organization, she was not identified as a consultant She was instead described as a senior executive who – actively participates in all aspects of Trump and Trump branded projects, including transaction evaluation, pre-development planning, financing, design, construction, sales and marketing, and ensuring that Trump’s physical standards and world-renowned operations are respected

Hairdressers, table linen, property taxes on a family estate … all have been deducted as professional expenses

Private jets, country clubs and mansions all played a role in selling Donald Trump

– I play on people’s fantasies, – he wrote in Trump: The Art of the Dealune ???? at ???? People want to believe that something is the biggest and the biggest and the most spectacular I call it truthful hyperbole This is an innocent form of exaggeration and a very effective form of promotionâ ????

If the singular Trump product is Trump in exaggerated form – ???? the man, the lifestyle, the acquisition? ???? then anything that fuels the image, including the cost of his business, can be written off on his taxes m Trump may be reporting business losses to the government, but he can still live a rich life and write it off

Take, for example, Mar-a-Lago, now the president’s permanent home, as well as a private club and a setting on which Trump’s luxury is played out As a business, it is also the source of millions of dollars in expenses deducted from taxable income, including $ 109,433 for linens and silverware and 197$ 829 for landscaping in 2017 The $ 210,000 paid to a Florida photographer over the years for filming numerous events at the club, including a 2016 New Years Eve party hosted by Mr. Asset

Mr. Trump wrote off as costs some business expenses – including fuel and meals associated with his aircraft, used to transport it between his various homes and properties.Likewise, the cost of haircuts, including including the over $ 70,000 paid to style her hair for The Apprentice ???? Together, nine Trump entities wrote off at least $ 95,464 paid to Ivanka Trump’s favorite hairstylist and makeup artist

By allowing the deduction of business expenses, the IRS demands that they be – ordinary and necessary, – an ill-defined standard often liberally interpreted by business owners

Maybe M Trump’s most generous interpretation of the write-off of business expenses is his treatment of the Seven Springs estate in Westchester County, NO.

Seven Springs is a throwback to another era The Main House, built in 1919 by Eugene I Meyer Jr, the former Federal Reserve chief who bought the Washington Post in 1933, sits on more than 200 acres of lush, almost untouched land just an hour’s drive north of New York

– The mansion measures 50,000 square feet, has three swimming pools, carts and is surrounded by nature reserves according to the Trump organization’s website

Mr. Trump had big plans when he bought the property in 1996 a golf course, a clubhouse and 15 private residences But the inhabitants of the surrounding towns thwarted his ambitions, arguing that the development would attract too much traffic and risk polluting drinking water

Mr. Trump instead found a way to get tax benefits from the estate He took advantage of what’s called a conservation easement In 2015, he signed an agreement with a land conservatory, agreeing not to develop the bulk of the property In exchange, he claimed a $ 21 million charitable tax deduction

Tax Records Reveal Another Way Seven Springs Generated Substantial Tax Savings In 2014, Mr. Trump classified the estate as an investment property, as opposed to a personal residence Since he wrote off $ 2 million in property taxes as a business expense even though its 2017 tax law allowed individuals to write off only $ 10,000 in property taxes per year

Courts have held that in order to treat residences as businesses for tax purposes, owners must demonstrate that they have… a real and honest objective of making a profit,… usually by making substantial efforts to rent the property and ultimately generate income

Whether or not Seven Springs meets these criteria, the Trumps described the property a little differently

In 2014, Eric Trump told Forbes that – this is really our compound ???? Growing up, he and his brother Donald Jr. spent many summers there, driving all-terrain vehicles and fishing on a nearby lake At one point the brothers made their home in a shed on the property – It was our home base for us for a long, long time, – Eric told Forbes

And the Trump organization’s website still describes Seven Springs as a retreat for the Trump familyâ € ”

Mr. Garten, the lawyer for the Trump organization, did not answer a question about the deregistration of Seven Springs

The Seven Springs conservation easement deduction is one of four that M Trump has claimed over the years Although his use of these deductions is widely known, his tax records show they represent the lion’s share of his charitable donations. about $ 119.3 million of about $ 130 million in personal and corporate charitable donations reported to the IRS

Two of these deductions – ???? in Seven Springs and Trump National Golf Club in Los Angeles – under investigation by New York Attorney General looking into whether property assessments, and therefore tax deductions, have been inflated

Legal fees are another common deductible expense for all businesses The jeRS requires that these costs be – directly related to the operation of your business, – and companies cannot deduct legal costs paid to defend charges arising from their participation in a political campaign.

Yet tax records show the Trump Corporation wrote off professional fees paid to criminal defense attorney Alan S Futerfas, who was hired to represent Donald Trump Jr in the Russia probe. were discussing Donald Jr.’s role in Trump Tower in 2016 with Russians who had promised damaging information about Ms. Clinton When he testified before Congress in 2017, Mr. Futerfas was at his side

Mister Futerfas was also hired to defend the president’s beleaguered charitable foundation, which would be shut down in 2018 after New York regulators said it had embarked on a shocking illegality schemeat ????

The Trump Corporation paid M Futerfas at least $ 1 9 million in 2017 and 2018, according to tax records At least $ 259,684 was also written off from Williams & Jensen, another law firm hired during the same period to represent Donald Trump Jr

Deals in countries ruled by strongmen, tenants who have affairs before the federal government, and hotels and clubs that attract those seeking access or favor

In May, the chairman of a trade group representing Turkish trade interests wrote to Commerce Secretary Wilbur Ross asking him to support increased trade between the United States and Turkey The ultimate goal was nothing less than to reorient the US supply chain away from Chinaâ € ”

The letter was among three sent to cabinet secretaries by Mehmet Ali Yalcindag, president of the Turkey-US Business Council, who noted that he had copied each of them to Mr. Asset

The president didn’t need to introduce Mr. Yalcindag: The Turkish businessman helped negotiate a licensing deal in 2008 for his family’s company to develop two Trump towers in Istanbul Tax records show the deal won Mr. Trump at least $ 13 million – far more than previously known including over $ 1 million since entering the White House, even as his former associate is now lobbying on behalf of Turkish interests

Mr. Yalcindag said he had « remained friendly » with Mr. Trump since working together years ago, but that all communication between his business group and the administration goes through formal channels and is properly disclosedâ € ”

The ethical dilemmas created by M Trump’s decision to keep his company in the White House has been documented But the full financial measure of his extraordinary confluence of interests … a president with a multitude of business entanglements at home and in a myriad of geopolitical hotspots remained elusive

M’s tax records Trump and his hundreds of companies accurately show how much money he has received over the years and how much he has come to rely on operating his brand in ways that create potential conflicts of interest. or direct while he is president The records also provide the first reliable window on its finances before 2014, the first year covered by its mandatory annual disclosures, showing that its total profits from certain projects outside the United States were greater than those indicated by these limited public filings.

Based on financial information, which presents a large part of his income in wide ranges, Mr. Trump’s revenue from Istanbul towers could have been as low as $ 3.2million In the Philippines, where he licensed his name to a Manila tower nearly ten years ago, the low end was $ 4million at ???? less than half of the $ 9.3million he actually made In Azerbaijan, he raised over $ 5million for the failed hotel project, roughly double what was on his public records

It didn’t take long for conflicts to erupt when Mr. Trump ran for president and won The Philippinesâ ???? Strongman leader Rodrigo Duterte selected the businessman behind the Trump Tower in Manila Argentina as his special trade envoy to Washington, a key person who had been involved in a Uruguayan licensing deal that has valued at M Trump $ 2 3 million was appointed to a cabinet post

The president’s conflicts have been most evident with Turkey, where the business community and the authoritarian government of President Recep Tayyip Erdogan have not shied away from taking advantage of various Trump ventures As Turkish-American relations were at an all-time low, a Turkish business group canceled a conference at M The Trump Hotel in Washington; six months later, when both countries were on better terms, the rescheduled event was attended by Turkish government officials Turkish Airlines also chose the Trump National Golf Club in suburban Virginia to host an event. p>

More generally, the tax records suggest other ways in which Mr. Trump’s presidency backed its slump in Monthly Credit Card Receipts, reported to the IRS by third-party card processing companies, reflect how some of its resorts, golf courses, and hotels have turned into stamping grounds privileged, if not places of influence peddling, from 2015 and continuing until his time in the White House

Credit card data does not reflect total income and is primarily useful for showing short-term ups and downs in consumer interest in a business While two of M’s Trump’s marquee designs – the Washington hotel in the Old Post Office and the Doral Golf Resort – ???? are laden with debt and continue to lose money, both have seen credit card transactions dramatically increase with his political rise

At the hotel, monthly revenue increased from $ 3.7 million in December 2016 shortly after opening, to $ 5 million in January 2017 and $ 6 million in May 2018 At Doral, after Mr. Trump declared his candidacy in June 2015, credit card revenues more than doubled, to $ 13 million, for the three months to August, compared to the same period the year before

The Mar-a-Lago Club is a Trump-owned business that has been consistently profitable and is a continuing source of concern over ethical disputes and breaches of national security Profits there rose sharply after M Trump declared his candidacy, as courtiers eagerly joining in to boost cash from initiation fees from $ 664,000 in 2014 to just under $ 6 million in 2016, even before Mr. Trump doubled the cost of initiation in January 2017 The membership rush allowed the president to withdraw $ 26 million from the company from 2015 to 2018, nearly triple the rate he paid himself during from the two previous years

Some of the largest corporate group payments for events or conferences at Mar-a-Lago and other Trump properties have been made since Mr. Trump became president, tax records show

Chez Doral, M Trump raised a total of at least $ 7 million in 2015 and 2016 from Bank of America, and at least $ 1 million in 2017 and 2018 from a trade association representing grocery retailers and wholesalers The US House of business paid Doral at least $ 406,599 in 2018

Beyond one-time payments for events or memberships, large companies also pay rent for space in the few commercial buildings that Mr. Trump actually owns Walgreens, the pharmacy giant that solved an antitrust case before federal regulators in 2017, is paying $ 3.4million a year for a lease at 40 Wall Street, a Trump-owned office building in Manhattan

Another tenant at 40 Wall, for $ 2.5million a year, is Atane Engineers, who changed their name in 2018 after a corruption scandal that resulted in two former senior executives … pleading guilty to paying bribes for city infrastructure contracts Despite the criminal case â ???? that got the company on the New York State list of « non-responsible entities » that require a waiver to obtain state contracts Newly baptized Atane registered as an eligible federal contractor without any restrictions listed in his file

Overall rental income at Wall 40 has increased markedly from $ 30.5 million in 2014 to $ 432 million in 2018 Tax records show the cost of existing leases has increased and at least four firms lawyers seem to have moved in since M Trump ran for president

In addition to the buildings he owns, there is the President’s stake in the Vornado Partnerships which control two valuable office towers 1290 Sixth Avenue in Manhattan and 555 California Street in San Francisco Vornado chief executive Steven Roth is a close ally of Trump recently appointed to the White House economic recovery board Last year, the president appointed Mr. Roth’s wife Daryl Roth on the Kennedy Center board of directors

Vornado tenants include a list of blue chip companies paying multi-million dollar leases, many of which regularly do business, lobby, or are federally regulated Among dozens of leases paid in 2018 to M Trump’s Vornado partnerships, according to his tax records, were $ 5.8 million from Goldman Sachs; Microsoft’s $ 3 million; $ 32 7 million from Neuberger Berman, an investment management company; and $ 8 million from Kirkland law firm & Ellis

Threats converge: increasing business losses, impending RS verification and maturity of personally guaranteed debts

When M Trump slipped on a golden escalator of Trump Tower to launch his presidential campaign in June 2015, his finances needed a shake

Its main activities reported increasing losses over $ 100 million in the past two years The river of celebrity-driven income that had long supported them was drying up

If M Trump was hoping his unlikely candidacy could, at least, revitalize his brand, his barrage of derogatory remarks about immigrants was quickly costing him two of his most important and easiest sources of cash. licensing deals with clothing and mattress makers that grossed him more than $ 30 million NBC, his partner in Miss Universe – source of nearly $ 20 million in profits – said he would no longer broadcast the show; he sold it shortly after

Now his tax records clearly indicate that he faces a host of threats to his business and his own financial well-being

Over the past decade, he appears to have filled the cash flow gap with a series of one-shots that may no longer be available

In 2012, he took out a $ 100 million mortgage on the Trump Tower commercial space He took almost the entire amount as payment, according to his tax records His company paid more than $ 15 million in interest on loan, but nothing on principal Full $ 100 million matures in 2022

And in January 2014, it sold $ 98 million in stocks and bonds, its biggest month of sales in at least two decades. He sold $ 54 million more in stocks and bonds in 2015, and $ 682 million in 2016 His financial disclosure released in July showed he only had $ 873,000 of securities left to sell.

Mr. Trump’s companies reported $ 34 million in cash in 2018, down 40% from five years earlier

Furthermore, tax records show that Mr. Trump once again did what he says he regrets, looking back on his collapse of the early 1990s: personally guaranteed hundreds of millions of dollars in loans, a move that has led his lenders to threaten to force him into debt. personal bankruptcy

This time around, he’s personally responsible for loans and other debts totaling $ 421 million, most of which mature within four years. If re-elected, his lenders could be placed in the unprecedented position of questioning whether to oust a sitting president

However, there is a tax advantage for M Asset Although business owners can use losses to avoid taxes, they can only do so up to the amount invested in the business. But by taking personal responsibility for this $ 421 million debt, Mr. Trump would be able to declare this amount a loss in the coming years

The balances on these loans had not been repaid at the end of 2018 And the companies that bear the bulk of the debt … the Doral Golf Resort ($ 125 million) and the Washington Hotel ($ 160 million) dollars) are having difficulty, which could make it difficult to find a lender who is ready to refinance it

Broad economy promises little relief Across the country, brick-and-mortar stores are in decline and they have been very important to Trump Tower, which in turn has been very important to Mr. Trump Nike, which leased the space for its flagship store in a building attached to Trump Tower and had paid $ 195 1 million in rent since the 1990s, stayed on in 2018

The president’s latest financial disclosure showed modest gains in 2019 But that was before the pandemic hit Its already struggling properties were closed several months earlier this year The resort town of Doral asked the Deutsche Bank to allow delay on loan payments Analysts predict hotel business will not fully recover until the end of 2023

Mr. Trump still has assets to sell But this could have its own consequences, both financial and for Mr. Trump’s desire to always be seen as a winner The Trump family said last year they were considering selling the Washington hotel, but not because they were losing money

In Mr Trump says, any difficulty in his finances was caused by the sacrifices made for his current job

– They say, ‘Trump is getting richer from our nation’, « he said at a rally in Minneapolis last October – I lose billions being president, and I don’t care C it’s good to be rich I guess, but I’m losing billionsâ ????

Donald Trump, Income Tax, The New York Times

World News – US – Trump’s taxes show chronic losses and years of tax evasion


SOURCE: https://www.w24news.com

Donnez votre avis et abonnez-vous pour plus d’infos

Vidéo du jour: