[ad_1]
The newspaper The New York Times published this Sunday an investigation in which revealed how were the tax returns of the president of the United States, Donald Trump.
The billionaire, Despite his status, he only paid $ 750 in taxes in 2016, when he was elected president, and the same the following year, thanks to fiscal optimization modalities to which great fortunes and American millionaires can resort.
Know what was Trump’s strategy to pay less taxes, as well as the way to obtain your main income and how much your debts are calculated on.
(You may be interested: ‘NYT’ agrees to Trump’s taxes and reveals large debts for years)
How did Trump build his empire?
The American president always boasted of having made a fortune thanks to his business skills and his nose for real estate. The revelations of The New York Times show a different reality, that of a man who knows, above all, how to promote his image.
Between 2000 and 2018 he earned $ 230 million for lending his name to hotels in Azerbaijan or Turkey, cookies and pillows. In its reality show The newbie obtained 197.3 million dollars according to Times.
But businesses run directly by Trump, luxury hotels and residences like Mar-a-Lago in Florida, residential or commercial real estate, golf clubs or attractions like an ice rink in Central Park they lost 174.5 million dollars in the same period.
(Read here: Trump’s explosive pre-election tax reveal)
Although some properties such as Trump Tower and Trump World Tower in New York are very profitable, golf courses (he owns 19 in total, in Miami or Bali, Indonesia) they are a black hole of financial losses that cost him 315 million dollars.
Unlike his father, who made his fortune renting apartments without too much risk, the president launched into difficult sectors to manage, highlights Kevin Riordan, Professor of Finance and Real Estate at Montclair University.
Donald Trump, who is currently in Florida, has his usual residence and offices in the tower.
Business is good when the economy is good, he notes. But Trump, according to this expert, “He seems very unqualified to run (his business) when times are tough”. The occupant of the White House is, however, “an excellent salesman.”
(Also read: How the ‘NYT’ published the most persecuted exclusive on Trump?)
How much are your fortune and debts?
His fortune was estimated this month at $ 2.5 billion by the magazine Forbes, which specifies that it lost 600 million dollars in one year. The Covid-19 pandemic emptied its office buildings in Manhattan and their value fell, as did the value of its hotels, deserts with the debacle of tourism and business travel.
All these properties belong to the Trump Organization, a group of companies managed by two of his sons since he was president. The main source of income for this entity is the amount paid by companies to be able to use the Trump name.
His last name license is estimated at $ 56 million, up from $ 80 million a year ago, according to Forbes. Donald Trump is also heavily in debt. During the 2016 election campaign, he proclaimed himself “the king of debt.”
(Plus: What can you expect from this Tuesday’s debate between Trump and Biden?)
Donald Trump Jr. is the Executive Vice President of Development and Acquisitions for Trump Organization Inc.
His loans and other personal debts total $ 421 million, according The New York Times, which accounts for a $ 100 million real estate loan to be paid before 2022.
Will you be able to honor your payments? Most banks in the United States stopped doing business with him since a series of bankruptcies in the early 1990s. Deutsche Bank is an exception.
The state of your finances could deteriorate, estimates the Times, if you lose an ongoing dispute with the US Treasury.
(You may be interested: Trump uncovers his letter to the United States Supreme Court)
How could you pay so little in taxes?
The president used mechanisms that They allow different payments to be deducted as professional expenses. For example, he subtracted from his taxable income expenses for household clothes, silverware, yard maintenance and even visits to the hairdresser. She also got tax credits.
But his strategy is, above all, invest in businesses, such as luxury golf clubs, that lose money, which allows you to declare losses and thus offset your gains.
One of Donald Trump’s maneuvers (…) was to register his personal expenses as professional expenses
“One of Donald Trump’s maneuvers to avoid paying taxes was to register his personal expenses as professional expenses, including $ 70,000 from hairdresser when participating in The newbieexplained Frank Clemente of the NGO Americans for Tax Fairness.
(Read here: What will be news this week / Trump’s ‘Jugadita’ to taxes)
“The real estate sector managed to benefit from the (legal) loopholes more than any other (sector) in the United States,” he added. US tax law allows business leaders to report their losses to reduce their taxes in subsequent years.
It also allows real estate companies to use their losses in the area to offset the payment of income taxes in other sectors of activity.
The revelations of Times They raise questions about the legality of some practices, such as expense deductions of $ 747,622 paid by the Trump Organization to the consulting firm co-led by Ivanka Trump, daughter of the president. The New York justice investigates the case.AFP
Read also
– ‘Trump lies about Colombia, his attacks are laughable’
– Trump puts Colombia in his re-election campaign with attack on Petro
– Trump is booed during tribute to Judge Ruth Bader Ginsburg
