Trump’s Chicago Tower Tax Troubles
Former President Donald J. Trump is facing scrutiny over a questionable accounting maneuver that allowed him to claim improper tax breaks from his troubled Chicago tower. An Internal Revenue Service inquiry revealed by The New York Times and ProPublica indicates that losing the audit battle could result in a hefty tax bill of over $100 million.
The Tower That Sparked Controversy
The 92-story skyscraper standing tall along the Chicago River represents Mr. Trump’s final major construction project. Despite being the tallest in the area, the tower has been plagued by financial difficulties. However, when Mr. Trump attempted to leverage tax benefits from these losses, the I.R.S. alleged that he went too far by essentially writing off the same losses twice.
Questionable Tax Claims
Mr. Trump’s first write-off on his 2008 tax return claimed losses of up to $651 million due to lagging sales and insurmountable debts. Subsequently, in 2010, he and his tax advisers executed a maneuver shifting ownership of the tower to a new partnership, allowing him to declare an additional $168 million in losses over the following decade.
High-Stakes Legal Battle
During his presidency, the I.R.S. conducted a thorough review of Mr. Trump’s case, with experts estimating a potential tax bill exceeding $100 million plus interest and penalties. The audit battle, which began in 2010, has been a point of contention between Mr. Trump and the I.R.S., with the outcome expected to set a precedent for wealthy individuals seeking tax benefits.
Ongoing Financial Challenges
Aside from the Chicago tower audit, Mr. Trump is faced with other legal battles, including defamation and civil fraud cases, totaling hundreds of millions of dollars. These financial threats, combined with the tax audit, present a complex challenge for the former president as he navigates legal proceedings and potential financial liabilities.
Expert Opinions
According to tax experts consulted on the matter, Mr. Trump’s accounting maneuvers have raised questions about the legality and ethicality of his tax strategies. With concerns over aggressive tax planning and potential repercussions, the audit and subsequent legal battles highlight the complexities of tax law and its implications for high-profile individuals.
Read More of this Story at www.nytimes.com – 2024-05-11 20:37:13
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