Raw: [Trump May Owe $100 Million From Double-Dip Tax Breaks, Audit Shows The New York Times] {Article Source: https://www.nytimes.com/2024/05/11/us/trump-taxes-audit-chicago.html}
Trump’s Legal TroublesCase TrackerHush-Money TrialFact-Checking Trump’s DefensesWhat if Trump Is Convicted?Trump on Trial NewsletterYou have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.The I.R.S. believes that former President Donald J. Trump violated a law meant to prevent double-dipping on tax-reducing losses.Credit…Jamie Kelter Davis for The New York TimesSkip to contentSkip to site indexTrump May Owe $100 Million From Double-Dip Tax Breaks, Audit ShowsA previously unknown focus of an I.R.S. audit is a dubious accounting maneuver that effectively meant taking the same write-offs twice on a Chicago skyscraper.The I.R.S. believes that former President Donald J. Trump violated a law meant to prevent double-dipping on tax-reducing losses.Credit…Jamie Kelter Davis for The New York TimesSupported bySKIP ADVERTISEMENTShare full article334By Russ Buettner and Paul KielThis article was published in partnership with ProPublica. Russ Buettner of The New York Times has spent years reporting on the former president’s finances, including decades of his tax returns. Paul Kiel of ProPublica has reported on the I.R.S. and the ways the ultrawealthy avoid taxes since 2018.May 11, 2024Updated 11:08 a.m. ETFormer President Donald J. Trump used a dubious accounting maneuver to claim improper tax breaks from his troubled Chicago tower, according to an Internal Revenue Service inquiry uncovered by The New York Times and ProPublica. Losing a yearslong audit battle over the claim could mean a tax bill of more than $100 million.The 92-story, glass-sheathed skyscraper along the Chicago River is the tallest and, at least for now, the last major construction project by Mr. Trump. Through a combination of cost overruns and the bad luck of opening in the teeth of the Great Recession, it was also a vast money loser.But when Mr. Trump sought to reap tax benefits from his losses, the I.R.S. has argued, he went too far and in effect wrote off the same losses twice.The first write-off came on Mr. Trump’s tax return for 2008. With sales lagging far behind projections, he claimed that his investment in the condo-hotel tower met the tax code definition of “worthless,” because his debt on the project meant he would never see a profit. That move resulted in Mr. Trump reporting losses as high as $651 million for the year, The Times and ProPublica found.There is no indication the I.R.S. challenged that initial claim, though that lack of scrutiny surprised tax experts consulted for this article. But in 2010, Mr. Trump and his tax advisers sought to extract further benefits from the Chicago project, executing a maneuver that would draw years of inquiry from the I.R.S. First, he shifted the company that owned the tower into a new partnership. Because he controlled both companies, it was like moving coins from one pocket to another. Then he used the shift as justification to declare $168 million in additional losses over the next decade.The issues around Mr. Trump’s case were novel enough that, during his presidency, the I.R.S. undertook a high-level legal review before pursuing it. The Times and ProPublica, in consultation with tax experts, calculated that the revision sought by the I.R.S. would create a new tax bill of more than $100 million, plus interest and potential penalties.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe.AdvertisementSKIP ADVERTISEMENTSite IndexSite Information Navigation© 2024 The New York Times CompanyNYTCoContact UsAccessibilityWork with usAdvertiseT Brand StudioYour Ad ChoicesPrivacy PolicyTerms of ServiceTerms of SaleSite MapCanadaInternationalHelpSubscriptionsManage Privacy Preferences
