Former President Donald Trump may face an IRS bill in excess of $100 million after a government audit indicates he double-dipped on tax losses tied to a Chicago skyscraper, according to a report by The New York Times and ProPublica that drew on a yearslong audit and public filings.
Quick Read
Former President Trump Faces Potential $100 Million IRS Bill Over Tax Issues
- Context: A report by The New York Times and ProPublica highlights a potential IRS bill exceeding $100 million for Donald Trump, linked to double-dipping tax losses associated with a Chicago skyscraper.
- Key Details:
- The audit, which has been ongoing for years, scrutinizes Trump’s tax maneuvers involving the Trump International Hotel and Tower in Chicago, where he reported significant losses in 2008 and again after transferring ownership in 2010.
- This issue is resurfacing as Trump, the presumptive Republican nominee, attempts a political comeback for the 2024 presidential election.
- Despite previous claims from Trump’s campaign that the IRS matter was settled, the potential financial ramifications are substantial, with penalties possibly driving the total owed above $100 million.
- The tax dealings come under renewed scrutiny alongside Trump’s broader financial practices, including a recent New York civil trial ruling against him for overstating his wealth, affecting his dealings with banks and insurers.
- President Joe Biden and other Democrats have criticized Trump for his tax practices and lack of transparency, contrasting with increased efforts to audit the wealthy and ensure tax code compliance.
The Associated Press has the story:
Trump may face a $100 million-plus tax bill if he loses IRS audit fight over Chicago tower
Newslooks- WASHINGTON (AP) —
Former President Donald Trump may face an IRS bill in excess of $100 million after a government audit indicates he double-dipped on tax losses tied to a Chicago skyscraper, according to a report by The New York Times and ProPublica that drew on a yearslong audit and public filings.
The report’s findings could put renewed focus on Trump’s business career as the presumptive Republican nominee tries to regain the White House after losing in 2020.
Trump used his cachet as a real estate developer and TV star to build a political movement, yet he has refused to release his tax filings as past presidential candidates have. The tax filings that the public does know about have come from past reporting by the Times and a public release of records by Democrats on the House Ways and Means Committee in 2022.
Trump’s presidential campaign provided a statement in son Eric Trump’s name saying the IRS inquiry “was settled years ago, only to be brought back to life once my father ran for office. We are confident in our position.”
The tax records cited by the report indicate that Trump twice deducted losses on the Trump International Hotel and Tower, which opened in 2009 near the banks of the Chicago River that cuts through that city’s downtown.
The report said Trump initially reported losses of $658 million in his 2008 filings under the premise that the property fit the IRS definition of being “worthless” because condominium sales were disappointing and retail space went unfilled amid a deep U.S. recession.
But in 2010, the published report said, Trump transferred the ownership of the property to a different holding company that he also controlled, using the move to save money on taxes by reporting an additional $168 million in losses over the next decade on the same property.
The report did not have any updates on the status of the IRS inquiry since December 2022, but said Trump could owe more than $100 million, including penalties, if he were to lose the audit battle.
Trump, meanwhile, is appealing a New York judge’s ruling from February after a civil trial that Trump, his company and top executives lied about his wealth on financial statements, conning bankers and insurers who did business with him. In early April, Trump posted a $175 million bond, halting collection of the more than $454 million he owes from the judgment and preventing the state from seizing his assets to satisfy the debt while he appeals.
Democrat President Joe Biden has said that Trump largely owes his fortune to an inheritance from his father, rather than through his own financial acumen. Biden has gone after Trump for not wanting to pay taxes, while his administration has increased IRS funding in order to increase audits of the ultra-wealthy and improve compliance with the federal tax code.
The Trump campaign opposes the additional funding that Biden and Democrats provided to the IRS. At campaign rallies, Trump has said the United States would be destroyed as a country unless his 2017 tax cuts that are largely set to expire after 2025 are extended.
