A New York Times report states that President Donald Trump paid only 7 50,750 in federal income tax the year he entered the White House – and, due to the huge losses, none of the 11 in 18 years the Times reviewed is even raising income tax doubts. About President Trump’s self-image as a smart and successful businessman.
That Sunday’s report came just weeks before Mr. Trump’s re-election bid for Mr. Week’s venture – an identity he has spent decades growing up and helped him win the presidency four years ago in his first run for political office. Office. The Times report adds to the uncertainty surrounding the presidential campaign of the war, which was vacated by the death of Justice Ruth Bader Ginsberg, a fierce battle over viral epidemics, racial unrest and a Supreme Court seat in American cities.
Mr. Trump on Sunday The report is called “fake news.”
“First of all, I paid a lot and I also paid a lot of state income tax.” Mr. Trump said at a news conference Sunday. “New York State costs a lot and I’ve paid a lot of money in the state. It will all be made public.”
The New York Times report focuses not on state returns but on federal tax returns. Mr. Trump did not disclose how much he paid in both federal or state income taxes.
Breaking tradition
Since entering the White House, Mr. Trump has broken the tradition established by his predecessor not only by refusing to release his tax returns but by giving him a legal fight to hide them. The Times report suggests why this would happen. That report states that many of Mr. Trump’s top businesses are losing money, a loss that has helped him cut his federal tax bill to a minimum.
Eugene Steverle, a tax expert at the Urban Institute, said he was not surprised to find out that Mr. Trump has paid almost no federal income tax. Most commercial real estate developers deduct large interest payments on their debts from taxable income, which reduces their tax bills. In general, they often avoid capital gains tax by making a profit from the sale of one building to another.
“Most tax experts expected you to get a little less in the direction of tax payments by President Trump,” said Steverle, who serves as Treasury Department official under President Ronald Reagan.
The Times noted that Alan Garten, a lawyer for the Trump organization, said of the Times report that “most, if not all, of the facts appear to be inaccurate” and sought reporting-based documents, according to the Times. Refused to provide to protect its resources. The Times said the tax that Mr. Trump paid to Garen at the time was just a direct controversy.
Here are seven key takeaways for Times reporting:
1. Trump paid 750 in taxes in both 2016 and 2017
The newspaper said Mr. Trump initially paid 95 95 million in taxes in the 18 years he studied. But he managed to get most of the money back by claiming – and receiving – .972.9 million federal tax refunds. According to the Times, Mr. Trump in state and local refunds. 21.2 million is also taken out of pocket, which is usually based on federal filings.
Mr. Trump’s outsize refund became the subject of a long-running internal revenue service audit of his finances. The audit was widely known. Trump has claimed that this is the only reason he cannot declare his compensation. But the Times report is the first to identify the issue that was primarily in controversy.
As a result of the refunds, Mr. Trump paid an average of 4 4.4 million annually in federal taxes from 2000 to 2017, the Times reported. In contrast, the top average U.S. Taxpayers.001% earners paid about 25 25 million annually over the same period.
Its tax returns also show that it has failed to pay its creditors 2010 287 million since 2010, which the Times says is much higher than previously known. While the debt is treated as debt-forgiven income by the IRS, Mr. Trump avoided paying tax on most of that money through tax maneuvers.
2. An elegant lifestyle by business expenses
During his television show “The Apprentice”, Trump has made more than ડ 10,000 a hairdresser from his home, and from his plane – Trump has made more money than his businesses can afford to pay for a luxurious lifestyle.
The Times noted that Mr. Trump’s homes, planes and golf courses are part of the Trump family’s business, and as such, Trump has also classified them as business expenses. Because companies can write off business expenses as a deduction, all such expenses have helped reduce Trump’s tax liability.
Mr. Trump owns Seven Springs Estate, a 50,000-square-foot mansion spread over 200 acres in Westchester County, New York. But because it classifies it as an investment property, Mr. Trump will be able to write off the estate’s 2.2 million property tax as business expenses. Eric Trump, one of Mr. Trump’s sons, has called the property a “long-standing home base for us,” while the Trump organization has called the property a “privacy” for the Trump family.
At the same time, the tax reshuffle enacted by Mr. Trump in 2017 gives taxpayers a limit of 10,000 10,000 in deductions for state and local taxes, including property taxes.
3. Some of its well-known businesses lose millions
As proof of his success as a developer and businessman, the president often draws attention to his distant hotels, golf courses and resorts. Yet there has been a hemorrhage of money in these properties.
The Times reports that Mr. Trump has claimed a loss of 31 315 million on his golf courses since 2000, including the Trump National Doral near Miami, which Mr. Trump has cited as the crown jewel in his business empire. Similarly, his Trump International Hotel in Washington, D.C. suffered a loss of 55 55 million, the Times reported.
Foreign. Foreign visitors help to support Trump’s wealth
Since Mr. Trump began his presidency, lobbyists, foreign governments and politicians have lured significant sums of money into his fortunes, a costly expense that has raised questions about his prosperity and legitimacy.
The Times report shows how much the cost has been: Since 2015, the increase in membership at its Mar-a-Lago resort in Florida has taken an additional 5 million a year. The Billy Graham Evangelistic Association spent at least 39 7,397,602 in 2017 at Trump’s Washington Hotel. Foreign projects have produced millions more for Mr. Trump – 3 3 million from the Philippines, ભારત 2.3 million from India, and 1 1 million from Turkey.
He. He may have paid “consulting fees” to family members
Mr. Trump has written about 26 26 million in “consulting fees” not understood as business expenses in many of his projects, the New York Times reports.
While the “advisors” are not identified on the tax return, but in some cases the advisory fees claimed as tax deductions match exactly what Ivanka Trump claimed as income in her financial statements. For example, Ivanka Trump registered to receive co 747,622 d receiving, paid from a co-owned consulting firm, the same amount Mr. Trump claimed as a tax deduction for two hotel projects.
The Times story notes that at the same time Ivanka Trump was the executive officer of Trump companies, she profited both from hotel and consulting fees. In the past the IRSA has slapped fines on some companies that have in fact sought to avoid taxes by paying consulting fees to people who were not independent contractors.
The maneuver helps companies bypass the payroll tax, the Institute Tax Taxation and Economic Policy noted.
6. Trump’s lucrative licensing revenue has dwindled
Mr. Trump earned 42 7,477.4 million from his reality show “The Apprentice” from 2010 to 2018, as well as awarding work permit deals for everything from clothing to mattress companies. But that revenue dried up when he ran for president and made derogatory remarks about immigrants, earning Miss Universe a million bucks with two lucrative deals, which NBC announced it would no longer broadcast.
Indeed, Mr. Trump’s brand appears to be the most successful part of his business. During the same period that “The Apprentice” was on the air, businesses run by Mr. Trump lost about 17 175 million, the Times reported.
7. Trump’s debt burden is coming
Mr. Trump is convinced that he will face severe economic pressure from the debt he has assimilated. The Times said presidential loans appear to be responsible for 421 million loans, most of which will come in four years. On top of that, a million 100 million mortgage on Trump Tower in New York will come in 2022.
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