This is for the apologists, those who didn't bother to actually read the Time article and the bot. I'll copy and paste the relevant text since you people are generally too lazy to actually read the article...much less understand it.
How Trump used the U.S. tax code to his benefit in three ways
For those who didn't read the article, this is likely the "audit" that Trump constantly refers to. This refund is stuck in some minor Congressional committee.
For those who didn't read the article, go ahead and try this tactic yourself.
For those who didn't read the article and who don't understand taxes, this is more than income tax avoidance--it is also estate tax avoidance. It will be interesting to see what comes of this piece.
For those who haven't been paying attention over the past 20 or so years, the budget for the IRS has been consistently under fire. As a result, there are fewer and fewer inspectors and fewer and fewer audits. The chances of getting caught get smaller and smaller each year. Just because the tactics Trump has used in the past to lower his tax bill haven't been caught doesn't mean they were legal. That is a reality that is lost on the cult members, apologists and bots.
How Trump used the U.S. tax code to his benefit in three ways
But the Times story also revealed three arrangements in which Trump’s company used the U.S. tax code to its benefit — to lower Trump’s taxes, or to make the IRS refund tens of millions in taxes he had already paid.
In these three cases, tax law experts say, Trump’s company ventured into complex legal territory — areas in which other companies have faced penalties for stretching the rules too far.
1. Trump obtained a massive tax refund based on a claim of $700 million in losses from an “abandoned” business.
Tax law experts said the “abandonment” provision in the law allows taxpayers to walk away from a partnership and then claim credit for years’ worth of losses from the partnership. But there’s a catch: If the taxpayer got anything valuable out of the partnership’s end — even the forgiveness of a debt — then the provision doesn’t apply. The taxpayer can claim far fewer tax benefits from the losses.
In this case, the Times reported that Trump did get something out of the end of his casino business: a 5 percent interest in a new casino company. That, experts said, could make it harder to claim he “abandoned” his business and got nothing in return — and, in turn, make it harder to hold on to that massive refund.
For those who didn't read the article, this is likely the "audit" that Trump constantly refers to. This refund is stuck in some minor Congressional committee.
2. Trump claimed that an estate in suburban New York was an “investment property.”
The Times article raised a question about the Seven Springs estate’s role in Trump’s taxes. It said that in 2014, Trump classified Seven Springs as an investment property rather than a personal residence. That allowed him to write-off $2.2 million in property taxes as a business expense, the newspaper said.
If the Trump Organization does regard that property as an investment, it does not appear to have brought much financial return recently. On Trump’s official financial disclosures, he said Seven Springs has produced only between $5,000 and $10,000 in total income since 2015. The disclosures describe this income as “interest” but do not give further details.
For those who didn't read the article, go ahead and try this tactic yourself.
3. Trump claimed credit for “consulting fees,” at least some of which appear to have been paid to his family members.
The Times said that Trump wrote off $26 million in consulting fees between 2010 and 2018. It said some of those fees appeared to have been paid to his daughter Ivanka Trump, who was an employee of the Trump Organization at the time.
In a 2011 tax court case, a judge ruled that an Illinois accounting firm could not deduct $3 million in “consulting fees” it had paid to shell companies run by the firm’s own founders. The shell companies themselves had provided no services, the court ruled. The firm had to pay back taxes, plus penalties.
For those who didn't read the article and who don't understand taxes, this is more than income tax avoidance--it is also estate tax avoidance. It will be interesting to see what comes of this piece.
For those who haven't been paying attention over the past 20 or so years, the budget for the IRS has been consistently under fire. As a result, there are fewer and fewer inspectors and fewer and fewer audits. The chances of getting caught get smaller and smaller each year. Just because the tactics Trump has used in the past to lower his tax bill haven't been caught doesn't mean they were legal. That is a reality that is lost on the cult members, apologists and bots.