In 2016, when he became president, as in 2017, he paid taxes of only $ 750. According to the audit of the US Treasury, in the 15 years prior to his election he obtained tax deductions amounting to $ 72.9 million. The New York Times investigation shows that Donald Trump reported losses in his business that reduced his tax obligations. At the same time, he declared business and consulting expenses, which provided him with other exemptions, a beneficiary of the consultancy payments being perhaps even his daughter Ivanka Trump. In the 10 years prior to his election, Trump has not paid any income taxes. In the midst of a legal battle, the president is also under pressure from deadlines for personal loans of hundreds of millions of dollars.
For the past 20 years, Trump has paid taxes about $ 400 million lower than other American billionaires in the same revenue group – 0.001 percent of the richest in the United States.
What were his tricks?
Huge tax deductions
Between 2000 and 2017, Donald Trump paid taxes of almost $ 95 million, but since 2010 he has received deductions amounting to $ 72.9 million. Thus, he paid annual taxes of only $ 1.4 million, given that the annual average for billionaires in the same income group was $ 25 million.
Donald Trump obtained them by declaring major financial losses, mostly related to his casinos in Atlantic City. Under US law, an investor who loses his money can be exempt from taxes if he no longer earns income. In 2011, the US Treasury filed a lawsuit against these taxes, and the case is not resolved so far, risking reaching the Supreme Court.
Donald Trump framed his personal expenses for business costs, including air travel to his residences and golf courses. So is about $ 170,000 for haircuts and stylists, including Ivanka Trump’s favorite stylist.
The New Springs property in New York State, bought in 1996, a family residence of more than 80 hectares, according to the Trump Organization’s website, has returned to these expenses. Donald Jr. has declared it an investment and has saved $ 2.2 million since 2014, despite legislation in 2017 limiting property tax deductions to $ 10,000 a year.
According to the tax returns of some of his companies, about 20 percent of revenues go to consulting fees, these amounts not being taxed. For example, the Trump organization had revenues of $ 5 million in Azerbaijan, of which $ 1.1 million was consulting fees. In the last ten years, Trump has thus saved about $ 26 million.
Some of that money would have been paid to Ivanka Trump himself: in his 2017 tax returns, when he became a White House adviser, there was an amount of around $ 747,622 – equivalent to consulting fees paid by hotels in Hawaii and Vancouver. according to Trump’s tax information. It’s a consulting firm where Ivanka is a co-owner.
His personal brand of great success
By contrast, between 2004 and 2018, Donald Trump amassed $ 424.4 million from the sale of his image, which brought him huge success. He had previously obtained rights to his brand, but the profits simply exploded with The Apprentice. In addition, his entire brand contributed to winning the 2016 election.
The Trump organization, made up of more than 500 companies, has been exempted from many taxes in terms of reporting 0 revenue while its personal brand and other businesses have brought it good profits. It’s a trick Trump has been using since the 1990s: the then collapse of his business has brought him significant tax cuts for many years.
Trump earned 50 percent of the profits from The Apprentice, which debuted on NBC in 2014, and bought more than 10 golf courses and many other properties. But once that money dwindled, Trump’s strategy stopped working: tax breaks fell and his financial situation worsened.
His election campaign came at a time of financial losses, the American daily reports. It may just be a coincidence, but it is certain that his business has benefited, with Trump making significant profits from housing foreign activists, politicians and officials on his properties. Since 2015, new members have brought revenues of $ 5 million to the Mar-a-Lago complex. The Evangelical Association Billy Graham paid in 2017 at least $ 397,602 for events at the Washington hotel. Moreover, in the first two years of his term, Trump earned millions of dollars from real estate projects in the Philippines, India and Turkey.
Tens of millions of dollars in loans
Over the years, Trump has tried to limit losses: for example, in 2012 he took out a $ 100 million mortgage for Trump Tower, which matures in 2022. He also earned money from the sale of assets and bonds. It currently has assets of less than $ 1 million.
To the extent that he does not appear to have paid the monthly amounts of that mortgage, and in the background of the lawsuit with the Treasury – as a result of which he could be forced to repay a similar amount – Trump may be in significant financial difficulties.
In the 1990s, he personally secured hundreds of millions of dollars in loans that nearly bankrupted him. His tax information shows that Trump is currently responsible for $ 421 million in loans over the next four years.