Threats are converging: mounting business losses, the looming I.R.S. The matter remains under appeal in lower courts so the records have not been handed over in New York. No subject has provoked more intense speculation about Mr. Trump’s finances than his connection to Russia. But that November, the window was more than doubled by a little-noticed provision in a bill Mr. Obama signed as part of the Great Recession recovery effort. The NYT report notes that Trump paid zero federal income taxes for 11 years of the period between 2000 and 2017. Helping to reduce Mr. Trump’s tax bills are unidentified consultants’ fees, … That provision has been the background music to Mr. Trump’s life. Tax returns do not, for example, record net worth — in Mr. Trump’s case, a topic of much posturing and almost as much debate. At one point, the brothers took up residence in a carriage house on the property. That is borne out by the tax records. Depreciation, though, is not a magic wand — it involves real money spent or borrowed to buy buildings or other assets that are expected to last years. Video, Is global warming making hurricanes stronger? Private jets, country clubs and mansions have all had a role in the selling of Donald Trump. But the change meant that when he filed his taxes for 2009, he could seek a refund of not just the $13.3 million he had paid in 2007, but also the combined $56.9 million paid in 2005 and 2006, when “The Apprentice” created what was likely the biggest income tax bite of his life. Nike, which rented the space for its flagship store in a building attached to Trump Tower and had paid $195.1 million in rent since the 1990s, left in 2018. His immediate two predecessors Barack Obama and George W. Bush routinely paid $100,000 annually in federal income tax, and sometimes far more. The Trump National Golf Club in Los Angeles, another site where Mr. Trump has claimed a conservation-easement deduction. VideoUK v US in Call of Duty showdown, The Frock Destroyers: 'I've not worn tights in months' VideoThe Frock Destroyers: 'I've not worn tights in months', French detectives face scathing organised crime, Stream every episode of Spiral on BBC iPlayer now, .css-orcmk8-HeadlineContainer{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-box-pack:justify;-webkit-justify-content:space-between;-ms-flex-pack:justify;justify-content:space-between;}Jill Biden: Backlash after WSJ op-ed calls future first lady 'kiddo'.css-1dedj2h-Rank{-webkit-align-self:center;-ms-flex-item-align:center;align-self:center;color:#B80000;margin-left:3.125rem;}1, US election: Pro-Trump rallies see scuffles in US cities2, Brexit trade talks: UK and EU to 'go the extra mile' in effort to agree deal3, Coronavirus: Germany to go into lockdown over Christmas4, Charley Pride: Country music singer dies of Covid-195, Electoral College: The people who ultimately pick the US president6, Paolo Rossi: Italian World Cup hero's home burgled during funeral7, Covid: Public must think carefully about Christmas risk, NHS bosses warn8, ‘I was in prison at 20 - and a music executive by 28’9, Covid vaccines: Will drug companies make bumper profits?10. In Turkey, a person directly involved in developing two Trump towers in Istanbul expressed bafflement when asked about consultants on the project, telling The Times there was never any consultant or other third party in Turkey paid by the Trump Organization. As the legal and political battles over access to his tax returns have intensified, Mr. Trump has often wondered aloud why anyone would even want to see them. Analysts have predicted that the hotel business will not fully recover until late 2023. © 2020 BBC. The allegations of tax avoidance will not be welcomed by his campaign, as millions of Americans deal with the financial fallout from the pandemic. Based on the financial disclosures, which report much of his income in broad ranges, Mr. Trump’s earnings from the Istanbul towers could have been as low as $3.2 million. For 2005 through 2007, cash from licensing deals and endorsements filled Mr. Trump’s bank accounts with $120 million in pure profit. Profits there rose sharply after Mr. Trump declared his candidacy, as courtiers eagerly joining up brought a tenfold rise in 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. In exchange, he claimed a $21.1 million charitable tax deduction. The letter was among three sent to cabinet secretaries by Mehmet Ali Yalcindag, chairman of the Turkey-U.S. Business Council, who noted that he had copied each one to Mr. Trump. His company has paid more than $15 million in interest on the loan, but nothing on the principal. They showed that, in many years, Mr. Trump lost more money than nearly any other individual American taxpayer. .css-14iz86j-BoldText{font-weight:bold;}The New York Times has obtained decades of tax information on US President Donald Trump. According to the Times, Mr. Trump paid no income taxes in 10 of the 15 years through 2015. More broadly, the tax records suggest other ways in which Mr. Trump’s presidency has propped up his sagging bottom line. The president paid just $750 (£580) in federal income tax both in 2016, the year he ran for the US presidency, and in his first year in the White House, He paid no such taxes in 11 of 18 years of tax records examined by the newspaper, The president has managed to lower his taxes through reporting hefty losses on his businesses, After the success of The Apprentice TV show he did initially pay significant taxes - $95m over 18 years. Mr. Trump instead found a way to reap tax benefits from the estate. The tax data examined by The Times provides a road map of revelations, from write-offs for the cost of a criminal defense lawyer and a mansion used as a family retreat to a full accounting of the millions of dollars the president received from the 2013 Miss Universe pageant in Moscow. These two claims are entirely inconsistent and, in any event, not supported by the facts.”. Whether or not Seven Springs fits those criteria, the Trumps have described the property somewhat differently. The Trump Corporation paid Mr. Futerfas at least $1.9 million in 2017 and 2018, tax records show. The retail and commercial spaces at Trump Tower, completed in 1983, have reliably delivered more than $20 million a year in profits, a total of $336.3 million since 2000 that has done much to help keep him afloat. With no prior-year losses left to reduce his taxable income, he paid substantial federal income taxes for the first time in his life: a total of $70.1 million. Last week, during the final presidential debate with Joe Biden, President Trump responded to claims that he only paid $750 in federal income taxes for … He’s been backpedaling ever since. Trump paid very little to no federal income taxes. The Frock Destroyers: 'I've not worn tights in months' Video, The Frock Destroyers: 'I've not worn tights in months', Jill Biden: Backlash after WSJ op-ed calls future first lady 'kiddo', US election: Pro-Trump rallies see scuffles in US cities, Brexit trade talks: UK and EU to 'go the extra mile' in effort to agree deal, Coronavirus: Germany to go into lockdown over Christmas, Charley Pride: Country music singer dies of Covid-19, Electoral College: The people who ultimately pick the US president, Paolo Rossi: Italian World Cup hero's home burgled during funeral, Covid: Public must think carefully about Christmas risk, NHS bosses warn. “The mansion is 50,000 square feet, has three pools, carriage houses, and is surrounded by nature preserves,” according to The Trump Organization website. In Mr. Trump’s nearly four years in office — and across his endlessly hyped decades in the public eye — journalists, prosecutors, opposition politicians and conspiracists have, with limited success, sought to excavate the enigmas of his finances. So how did he escape nearly all taxes on that fortune? In 2025, according to the Tax Policy Center, the top 1% would get 25% of the cut. The documents chart a great churn of money, but while returns report debts, they often do not identify lenders. When the casino bankruptcy concluded, he got 5 percent of the stock in the new company. While business owners can use losses to avoid taxes, they can do so only up to the amount invested in the business. After tabulating all the profits and losses from Mr. Trump’s various endeavors on Form 1040, the accountants came to Line 56, where they had to enter the total income tax the candidate was required to pay. Trump taxes: Supreme Court says New York prosecutors can see records, Polish women forced abroad for abortion. “It’s very complicated.” He often claims that he cannot do so while under audit — an argument refuted by his own I.R.S. Turkish Airlines also chose the Trump National Golf Club in suburban Virginia to host an event. When “The Apprentice” premiered, Mr. Trump had opened only two golf courses and was renovating two more. Those costs must be spread out as expenses and deducted over the useful life of the asset. Even so, it has its limits. For example, 105 of them are a variation of the name Trump Marks, which he uses for licensing deals. Until 2009, those coupons could be used to wipe away taxes going back only two years. Hannah Reyes Morales for The New York Times. Here’s how his accountants arrived at that figure in 2017. Over all, since 2000, Mr. Trump has reported losses of $315.6 million at the golf courses that are his prized possessions. His already struggling properties were shut down for several months earlier this year. He has never had to invest more money in the partnership, tax records show. To claim the deduction, the consulting arrangement must be an “ordinary and necessary” part of running the business, with fees that are reasonable and market-based, according to the I.R.S. “If I’m not going to run it, I don’t want to be involved in it,” he told The Associated Press. Hair stylists, table linens, property taxes on a family estate — all have been deducted as business expenses. And in January 2014, he sold $98 million in stocks and bonds, his biggest single month of sales in at least the last two decades. He could be forced to pay more than $100 million if a ruling were to go against him, the NYT says. A partner who walks away from a business with nothing — what tax laws refer to as abandonment — can suddenly declare all the losses on the business that could not be used in prior years. Mr. Trump has an established track record of stiffing his lenders. With the term “personal taxes,” however, Mr. Garten appears to be conflating income taxes with other federal taxes Mr. Trump has paid — Social Security, Medicare and taxes for his household employees. .css-1hlxxic-PromoLink:link{color:inherit;}.css-1hlxxic-PromoLink:visited{color:#696969;}.css-1hlxxic-PromoLink:link,.css-1hlxxic-PromoLink:visited{-webkit-text-decoration:none;text-decoration:none;}.css-1hlxxic-PromoLink:link:hover,.css-1hlxxic-PromoLink:visited:hover,.css-1hlxxic-PromoLink:link:focus,.css-1hlxxic-PromoLink:visited:focus{color:#B80000;-webkit-text-decoration:underline;text-decoration:underline;}.css-1hlxxic-PromoLink:link::after,.css-1hlxxic-PromoLink:visited::after{content:'';position:absolute;top:0;right:0;bottom:0;left:0;z-index:2;}Trump taxes: Supreme Court says New York prosecutors can see records, US Supreme Court hears arguments over Trump's tax returns, PM and EU chief agree to extend Brexit trade talks. He reported paying taxes, in turn, on a number of his overseas ventures. The U.S. Chamber of Commerce paid Doral at least $406,599 in 2018. Vornado’s chief executive, Steven Roth, is a close Trump ally recently named to the White House economic recovery council. Tax records that Mr. Trump long fought to keep secret show how years of business losses allowed him to avoid paying federal income taxes for much of the last two decades. Mr. Garten, the Trump Organization lawyer, did not respond to a question about the Seven Springs write-off. Another common deductible expense for all businesses is legal fees. The I.R.S. requires that these fees be “directly related to operating your business,” and businesses cannot deduct “legal fees paid to defend charges that arise from participation in a political campaign.”. Even so, in 2017, the average federal income tax rate for the highest-earning .001% percent of tax filers was 24.1%, according to the IRS. President Trump signed the Tax Cuts and Jobs Act (TCJA) into law on Dec. 22., 2017, bringing sweeping changes to the tax code. Mr. Trump may be reporting business losses to the government, but he can still live a life of wealth and write it off. Eric, Ivanka and Donald Trump Jr. with their father at an announcement of the Vancouver hotel project in 2013. It does not include his personal returns for 2018 or 2019. He has pumped $213 million of fresh cash into Doral, tax records show, and has a $125 million mortgage balance coming due in three years. Ms. Trump appears to have both managed that deal, and another in Hawaii, as a salaried Trump Organization executive, and also been paid as a “consultant” on them. Indeed, in some instances where large fees were claimed, people with direct knowledge of the projects were not aware of any outside consultants who would have been paid. When asked about the arrangement, the Trump Organization lawyer, Mr. Garten, did not comment. “The Apprentice” created what was probably the biggest income tax bite of Mr. Trump’s life. To submit a letter to the editor for publication, write to, Long-Concealed Records Show Trump’s Chronic Losses and Years of Tax Avoidance. They comprise information that Mr. Trump has disclosed to the I.R.S., not the findings of an independent financial examination. 1 Oct 2020 9,566. In 2016, he gave up on getting paid back and turned the loan into a cash contribution. Video. Across the country, brick-and-mortar stores are in decline, and they have been very important to Trump Tower, which has in turn been very important to Mr. Trump. For 2015, he paid $641,931, his first payment of any federal income tax since 2010,” the New York Times reported. The newspaper said Trump initially paid $95 million in taxes over the 18 years it studied. Beyond one-time payments for events or memberships, large corporations also pay rent for space in the few commercial buildings Mr. Trump actually owns. Federal ruling sets the stage for a battle at the Supreme Court over the president’s tax records. George Yin, a former chief of staff for the joint committee, said that any identifying information about taxpayers under review was tightly held among a handful of staff lawyers and was rarely shared with politicians assigned to the committee. The records that The Times reviewed square with the way Mr. Trump has repeatedly cited, without explanation, an ongoing audit as grounds for refusing to release his tax returns. The data contains no new revelations about the $130,000 payment to Stephanie Clifford, the actress who performs as Stormy Daniels — a focus of the Manhattan district attorney’s subpoena for Mr. Trump’s tax returns and other financial information. Did he write off as a business expense the hush-money payment to the pornographic film star Stormy Daniels in the days before the 2016 election? Against that backdrop, the records go much further toward revealing the actual and potential conflicts of interest created by Mr. Trump’s refusal to divest himself of his business interests while in the White House. And Mr. Trump does appear to have received something. The court concluded that the partners had structured the fees to “distribute profits, not to compensate for services.”. Trump National Doral near Miami, Mr. Trump’s largest golf resort. Mr. Trump was periodically required to pay a parallel income tax called the alternative minimum tax, created as a tripwire to prevent wealthy people from using huge deductions, including business losses, to entirely wipe out their tax liabilities. The Philippines’ strongman leader, Rodrigo Duterte, chose as a special trade envoy to Washington the businessman behind the Trump tower in Manila. At Doral, Mr. Trump collected a total of at least $7 million in 2015 and 2016 from Bank of America, and at least $1.2 million in 2017 and 2018 from a trade association representing food retailers and wholesalers. The NYT says Mr Trump has paid about $400m less in combined federal income taxes over the last two decades compared to a very rich person who paid the average for that group each year. It goes on to note that Trump … On Ms. Trump’s now-defunct website, which explains her role at the Trump Organization, she was not identified as a consultant. Trump’s former … At the same time, it's unclear how much political damage this will do. It has remained there, unresolved, with the statute of limitations repeatedly pushed forward. And once I ran, or once I won, or somewhere back a long time ago, everything was like, ‘Well, let’s start all over again.’ It’s a disgrace.”. Together with related financial documents and legal filings, the records offer the most detailed look yet inside the president’s business empire. The president also remains engaged in a long-running battle with the Internal Revenue Service (IRS) over the $72.9m tax refund he received. Several leading Republicans have backed him on that. Trump’s Taxes Show Chronic Losses and Years of Income Tax Avoidance, How Reality-TV Fame Handed Trump a $427 Million Lifeline, Trump Engineered a Sudden Windfall in 2016 as Campaign Funds Dwindled, Charting an Empire: A Timeline of Trump’s Finances, An Editor’s Note on the Trump Tax Investigation, Trump Records Shed New Light on Chinese Business Pursuits, the money he secretly received from his father. The language was crucial. Even the effective tax rate paid by the wealthiest 1 percent of Americans could have caused him to pay more than $100 million. The figures below, drawn from the New York Times’s own analysis of Trump’s tax-return data for 2017, show that Trump paid $7,435,857 in taxes in 2017. The law created new income tax brackets that changed what many Americans pay in taxes. The committee interviewed a top Miss Universe executive, Paula Shugart, who said the Agalarovs offered to underwrite the event; their family business, Crocus Group, paid a $6 million licensing fee and another $6 million in expenses. In fact, confidential records show that starting in 2010 he claimed, and received, an income tax refund totaling $72.9 million — all the federal income tax he had paid for 2005 through 2008, plus interest. Mr. Trump bought the resort for $150 million in 2012; through 2018, his losses have totaled $162.3 million. US faces bleak winter amid worst Covid wave yet, UK v US in Call of Duty showdown. In Mr. Trump’s telling, any difficulty in his finances has been caused by the sacrifices made for his current job. When prosecutors and congressional investigators issued subpoenas for his returns, he wielded not just his private lawyers but also the power of his Justice Department to stalemate them all the way to the Supreme Court. The “consultants” are not identified in the tax records. auditors and an opinion of the congressional Joint Committee on Taxation, a bipartisan panel better known for reviewing the impact of tax legislation. Perhaps Mr. Trump’s most generous interpretation of the business expense write-off is his treatment of the Seven Springs estate in Westchester County, N.Y. The Times says the tax return data … The tax records for Mr. Trump and his hundreds of companies show precisely how much money he has received over the years, and how heavily he has come to rely on leveraging his brand in ways that pose potential or direct conflicts of interest while he is president. “It’s a disgrace what’s happened,” he told Mr. Hannity. The three European golf courses, the Washington hotel, Doral and Trump Corporation reported losing a total of $150.3 million from 2010 through 2018, without including depreciation as an expense. In 1973, The Providence Journal reported that, after a charitable deduction for donating his presidential papers, Richard M. Nixon had paid $792.81 in 1970 on income of about $200,000. Donald J. Trump paid $750 in federal income taxes the year he won the presidency. As the president wages a re-election campaign that polls say he is in danger of losing, his finances are under stress, beset by losses and hundreds of millions of dollars in debt coming due that he has personally guaranteed. Let’s take a look at the 2020 tax brackets, and compare them … The New York Times reveals that President Donald Trump has not paid any federal income taxes in 10 of the past 15 years. for income taxes he might owe — $1 million for 2016 and $4.2 million for 2017. Among businesses he runs, Mr. Trump’s first success remains his best. Since 2000, he has reported losing $315.6 million at his golf courses. When asked in a 2011 lawsuit deposition whom he relied on to handle important details of his licensing deals, he named only Ivanka, Donald Jr. and Eric. Now his tax records make clear that he is facing a battery of threats to his business and his own financial well-being. In the Philippines, where he licensed his name to a Manila tower nearly a decade ago, the low end of the range was $4.1 million — less than half of the $9.3 million he actually made. Nor do they reveal any previously unreported connections to Russia. During the Great Recession bailout, he asked for the money back. His core businesses were reporting mounting losses — more than $100 million over the previous two years. Meanwhile, Eric Trump has called it a “home base,” and the Trump Organization website describes it as a “retreat for the Trump family.”. I have a lot of cash and plenty of places I can go.”. For 2015, he paid $641,931, his first payment of any federal income tax since 2010. In addition to buildings he owns outright, there is the president’s stake in the Vornado partnerships that control two valuable office towers — 1290 Sixth Avenue in Manhattan and 555 California Street in San Francisco.