Trump’s Tax Woes: Potential USD 100 Million Liability

Trump's Tax Woes: Potential USD 100 Million Liability at Manhattan Criminal Court in New York, New YSARAH YENESEL/Pool via REUTERS – RC2XL7AOLG9O

VoM News Desk | May 12, 2024 | 08:38 AM IST | United States of America, World | Follow on Google News

Trump’s Tax Woes: Potential USD 100 Million Liability

Trump’s Tax Woes: Potential USD 100 Million Liability

Key Highlights:

1. IRS inquiry uncovers Trump’s use of “dubious accounting maneuver” for tax breaks.
2. Trump faces potential liability of over USD 100 million in taxes related to Chicago skyscraper.
3. Outcome could set precedent for tax benefits from partnership laws.

Former US President Donald Trump may face a tax liability exceeding USD 100 million if he loses an IRS inquiry into his claims of significant losses on his Chicago skyscraper, as per the New York Times. The inquiry revealed Trump’s use of a questionable accounting maneuver to claim improper tax breaks from the troubled tower.

The 92-storey skyscraper, Trump’s last major construction project, became a focal point for tax benefits from reported losses. Trump claimed losses as high as USD 651 million in 2008, asserting his investment in the tower was “worthless.” However, subsequent maneuvers led to further scrutiny by the IRS.

Trump’s tax records, long withheld from public view, have become a subject of intense scrutiny since his 2016 presidential campaign. The outcome of his tax dispute could establish a precedent for wealthy individuals seeking tax advantages through partnership laws.

Amidst ongoing legal battles, including defamation and civil fraud cases, Trump faces the added pressure of a criminal trial in Manhattan. The IRS inquiry adds to a series of financial challenges confronting the former president.

Source: New York Times

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