This is the line from that article that stands out to me:
While the White House would never say so publicly, by pushing to confirm a choice before voters render their judgment on him, Mr. Trump is effectively conceding that he could lose and therefore it would be better to fill the seat immediately.
The writer clearly does not understand Trump, because he’s already openly said EXACTLY this to all effect.
Here’s the rundown of his dark qualities…as written by two psychologists.
“Get rid of the ballots” and “there won’t be a transfer,” said Donald Trump on Wednesday. This comment is a direct and dangerous expression of his anti-democratic intention. If unstopped, Trump may well destroy our 244-year-old democracy.
It is time to stop pulling punches. It is time to stop relying on political pundits to weigh in on Trump’s behavior, which they often soften and even normalize.
We are psychologists, and we are convinced Donald Trump is a psychopath. His malignant behavior over the past four years is growing and escalating right before our eyes. Trump’s psychopathy will change us forever if he is not stopped.
This is not hyperbole. This is not an expression of "a left-wing agenda.” This is a mental health opinion based on thousands of hours of documented behavior by this president.
He breaks norms, rules, and laws with impunity.
He lies, on average, 15 times a day.
He peddles fake conspiracy theories and irrational magical thinking.
He has been accused of sexually predatory behavior by at least 25 women.
He blames, scapegoats and gaslights as easily as he breathes.
He undermines the vital role of the free press because he abhors oversight and accountability.
His lies and anti-scientific advice and intentional downplaying of the coronavirus pandemic has led to countless American deaths.
He is callous and cold and unfeeling because he has no conscience.
He denigrates and humiliates anyone and everyone in his path.
He has no respect for military heroes or renowned experts.
He is racist and xenophobic.
He incites violence and culture wars.
He is obsessed with power and adoration.
He is a greedy opportunist.
He is corrupt to the core.
Now Trump is desperate to win re-election. He does not want to lose his hold on power for a number of reasons, most notably his insatiable thirst for attention. He is afraid of facing criminal charges once he leaves office. He is already essentially an unindicted co-conspirator in a campaign finance crime. He knows he is lawless and corrupt; that is why he lies about it so frequently and fervently.
Trump will do absolutely anything — no matter how untruthful or illegal or immoral — to win this election. He has already compromised the Postal Service.
Trump will declare victory as soon as he can, even if millions of ballots have not been counted. If need be, he will challenge the election results so that the Supreme Court will ultimately choose him for a second term. In fact, he has openly admitted that he wants to immediately replace Justice Ruth Bader Ginsburg because of the upcoming election. Trump’s desire to sabotage our election process is the behavior of a dictator.
Trump is letting the Russians intervene on his behalf in this election. They are doing so. Before Trump, such an invitation would have been considered treasonous and criminal.
Trump is fearmongering about Joe Biden and all Democrats on a daily basis. His allegations against Biden are outrageous and even bizarre; Trump asserted that there are “people in dark shadows” who are controlling Biden.
Trump’s falsehoods about health insurance and pre-existing illnesses and Social Security benefits and Medicare are intended to sow doubt and confusion in the American public. He says one thing but does the exact opposite. He tells us that he will protect pre-existing illnesses, but behind the scenes he is taking court action to disallow them.
Trump is the most psychiatrically disordered president in history.
Donald Trump is dishonest and destructive and evil. He has become embolden and empowered by the complicity of his Republican sycophants. Sadly, he now believes he is destined to carry on his mission. He feels unstoppable. And he must be stopped before it is too late.
Blotcky is a clinical psychologist in Birmingham, Ala. Norrholm, also a psychologist, is on faculty at the Wayne State University School of Medicine in Detroit.
The Interregnum comprises 79 days, carefully bounded by law. Among them are “the first Monday after the second Wednesday in December,” this year December 14, when the electors meet in all 50 states and the District of Columbia to cast their ballots for president; “the 3d day of January,” when the newly elected Congress is seated; and “the sixth day of January,” when the House and Senate meet jointly for a formal count of the electoral vote. In most modern elections these have been pro forma milestones, irrelevant to the outcome. This year, they may not be.
…
The interregnum allots 35 days for the count and its attendant lawsuits to be resolved. On the 36th day, December 8, an important deadline arrives.At this stage, the actual tabulation of the vote becomes less salient to the outcome. That sounds as though it can’t be right, but it is: The combatants, especially Trump, will now shift their attention to the appointment of presidential electors.
December 8 is known as the “safe harbor” deadline for appointing the 538 men and women who make up the Electoral College. The electors do not meet until six days later, December 14, but each state must appoint them by the safe-harbor date to guarantee that Congress will accept their credentials. The controlling statute says that if “any controversy or contest” remains after that, then Congress will decide which electors, if any, may cast the state’s ballots for president.
Shortly after the pandemic broke out in the United States, in March, Elias, in a blog post titled “Four Pillars to Safeguard Vote by Mail,” outlined the Democrats’ approach:
Postage must be free or prepaid by the government
Ballots postmarked on or before Election Day must count.
Signature matching laws need to be reformed to protect voters.
Community organizations should be permitted to help collect and deliver voted, sealed ballots.
David Rivkin, who served in the White House counsel’s office and Justice Department under Presidents Reagan and George H.W. Bush, warned about what he characterized as the “Titanic scenario”:
- Disputed election results in many states with potentially inconsistent opinions on the same legal issues.
- A deadlocked Supreme Court if Trump doesn’t fill Ruth Bader Ginsburg’s seat before the election.
- It becomes up to the House of Representatives to declare the winner. But the question of who controls the delegations in the House may also be at play, given that every member of Congress is also up for reelection this year.
More scathing portrayals of the President showing him as manipulative, underhanded and mean when it came to his father’s (Fred Sr) decline into dementia and T’s wanton money grubbing behavior when it came to redoing his father’s will.
It comes to light mostly due to Mary Trump’s book, but as we get closer to the election, there will be scads of this kind of information, since T has hidden all of his taxes from anyone. Seems
like an appropriate money trail to search out what T is really like (which we unfortunately knew from the start)
It was a fragile moment for the senior Trump, who was 85 years old and had built a real estate empire worth hundreds of millions of dollars. He would soon be diagnosed with cognitive problems, such as being unable to recall things he was told 30 minutes earlier or remember his birth date, according to his medical records, which were included in a related court case.
Now, those records and other sources of information about the episode obtained by The Washington Post reveal the extent of Fred Trump Sr.’s cognitive impairment and how Donald’s effort to change his father’s will tore apart the Trump family, which continues to reverberate today.
The recent release of a tell-all book by the president’s niece Mary L. Trump and the disclosure of secret recordings of her conversations with her aunt reflect the ongoing resentment of some family members toward Donald Trump’s attempt to change his father’s will.
With the election weeks away, the documents and recordings provide more fodder for Mary Trump’s continuing efforts to see her uncle defeated by Democrat Joe Biden, whom she has said she would do “everything in my power” to elect.
Trump’s sister Maryanne Trump Barry was recorded by her niece in January 2019 expressing outrage over her brother’s efforts to change the will as their father’s mental capacity was declining. “Dad was in dementia,” Barry said.
Barry said that when she was asked by her father in 1990 to review the proposed changes, she consulted with her husband, John Barry, an attorney familiar with estate law who died in 2000. “I show it to John, and he says, ‘Holy s–t.’ It was basically taking the whole estate and giving it to Donald,” Barry said.
Barry helped convince her father to reject her brother’s effort. As a result, Donald Trump “didn’t talk to me for two years,” Barry said during one of several conversations her niece recorded. Mary Trump recently provided the tapes to The Post.
…
Mary Trump said in a statement to The Post that Donald Trump’s initial effort to change his father’s will when his mental state was in decline is still relevant today because it shows how he put his own interests above even those of his own family members.
“As demonstrated by his willingness to alter his father’s will illicitly and in secret, there are no limits to Donald’s unethical behavior,” she said. “Because doing so benefited Donald, however, he had no compunction about deceiving his father in order to defraud his own siblings. There is no code of conduct, no moral or ethical imperative that stands in the way of Donald’s craven willingness to achieve his ends no matter the means.”
Where did these tax returns come from you wonder? But here they are… And how was he entitled to a $72.9 Million tax refund after declaring losses? Lots here to look through. 
The Times obtained Donald Trump’s tax information extending over more than two decades, revealing struggling properties, vast write-offs, an audit battle and hundreds of millions in debt coming due.Donald J. Trump paid $750 in federal income taxes the year he won the presidency. In his first year in the White House, he paid another $750.
He had paid no income taxes at all in 10 of the previous 15 years — largely because he reported losing much more money than he made.
As the president wages a re-election campaign that polls say he is in danger of losing, his finances are under stress, beset by losses and hundreds of millions of dollars in debt coming due that he has personally guaranteed. Also hanging over him is a decade-long audit battle with the Internal Revenue Service over the legitimacy of a $72.9 million tax refund that he claimed, and received, after declaring huge losses. An adverse ruling could cost him more than $100 million.
The tax returns that Mr. Trump has long fought to keep private tell a story fundamentally different from the one he has sold to the American public. His reports to the I.R.S. portray a businessman who takes in hundreds of millions of dollars a year yet racks up chronic losses that he aggressively employs to avoid paying taxes. Now, with his financial challenges mounting, the records show that he depends more and more on making money from businesses that put him in potential and often direct conflict of interest with his job as president.
The New York Times has obtained tax-return data extending over more than two decades for Mr. Trump and the hundreds of companies that make up his business organization, including detailed information from his first two years in office. It does not include his personal returns for 2018 or 2019. This article offers an overview of The Times’s findings; additional articles will be published in the coming weeks.
The returns are some of the most sought-after, and speculated-about, records in recent memory. In Mr. Trump’s nearly four years in office — and across his endlessly hyped decades in the public eye — journalists, prosecutors, opposition politicians and conspiracists have, with limited success, sought to excavate the enigmas of his finances. By their very nature, the filings will leave many questions unanswered, many questioners unfulfilled. They comprise information that Mr. Trump has disclosed to the I.R.S., not the findings of an independent financial examination. They report that Mr. Trump owns hundreds of millions of dollars in valuable assets, but they do not reveal his true wealth. Nor do they reveal any previously unreported connections to Russia.
…
The tax data examined by The Times provides a road map of revelations, from write-offs for the cost of a criminal defense lawyer and a mansion used as a family retreat to a full accounting of the millions of dollars the president received from the 2013 Miss Universe pageant in Moscow.
Together with related financial documents and legal filings, the records offer the most detailed look yet inside the president’s business empire. They reveal the hollowness, but also the wizardry, behind the self-made-billionaire image — honed through his star turn on “The Apprentice” — that helped propel him to the White House and that still undergirds the loyalty of many in his base.
Ultimately, Mr. Trump has been more successful playing a business mogul than being one in real life.
Adding this 18 Takeaways
The New York Times has obtained tax-return data for President Trump and his companies that covers more than two decades. Mr. Trump has long refused to release this information, making him the first president in decades to hide basic details about his finances. His refusal has made his tax returns among the most sought-after documents in recent memory.
Among the key findings of The Times’s investigation:
- Mr. Trump paid no federal income taxes in 11 of 18 years that The Times examined. In 2017, after he became president, his tax bill was only $750.
- He has reduced his tax bill with questionable measures, including a $72.9 million tax refund that is the subject of an audit by the Internal Revenue Service.
- Many of his signature businesses, including his golf courses, report losing large amounts of money — losses that have helped him to lower his taxes.
- The financial pressure on him is increasing as hundreds of millions of dollars in loans he personally guaranteed are soon coming due.
- Even while declaring losses, he has managed to enjoy a lavish lifestyle by taking tax deductions on what most people would consider personal expenses, including residences, aircraft and $70,000 in hairstyling for television.
- Ivanka Trump, while working as an employee of the Trump Organization, appears to have received “consulting fees” that also helped reduce the family’s tax bill.
- As president, he has received more money from foreign sources and U.S. interest groups than previously known. The records do not reveal any previously unreported connections to Russia.
It is important to remember that the returns are not an unvarnished look at Mr. Trump’s business activity. They are instead his own portrayal of his companies, compiled for the I.R.S. But they do offer the most detailed picture yet available.
Below is a deeper look at the takeaways. The main article based on the investigation contains much more information, as does a timeline of the president’s finances. Dean Baquet, the executive editor, has written a note explaining why The Times is publishing these findings.
The president’s tax avoidance
Mr. Trump has paid no federal income taxes for much of the past two decades.
In addition to the 11 years in which he paid no taxes during the 18 years examined by The Times, he paid only $750 in each of the two most recent years — 2016 and 2017.
He has managed to avoid taxes while enjoying the lifestyle of a billionaire — which he claims to be — while his companies cover the costs of what many would consider personal expenses.
This tax avoidance sets him apart from most other affluent Americans.
Taxes on wealthy Americans have declined sharply over the past few decades, and many use loopholes to reduce their taxes below the statutory rates. But most affluent people still pay a lot of federal income tax.
In 2017, the average federal income rate for the highest-earning .001 percent of tax filers — that is, the most affluent 1/100,000th slice of the population — was 24.1 percent, according to the I.R.S.
Over the past two decades, Mr. Trump has paid about $400 million less in combined federal income taxes than a very wealthy person who paid the average for that group each year.
His tax avoidance also sets him apart from past presidents.
Mr. Trump may be the wealthiest U.S. president in history. Yet he has often paid less in taxes than other recent presidents. Barack Obama and George W. Bush each regularly paid more than $100,000 a year — and sometimes much more — in federal income taxes while in office.
Mr. Trump, by contrast, is running a federal government to which he has contributed almost no income tax revenue in many years.
A large refund has been crucial to his tax avoidance.
Mr. Trump did face large tax bills after the initial success of “The Apprentice” television show, but he erased most of these tax payments through a refund. Combined, Mr. Trump initially paid almost $95 million in federal income taxes over the 18 years. He later managed to recoup most of that money, with interest, by applying for and receiving a $72.9 million tax refund, starting in 2010.
The refund reduced his total federal income tax bill between 2000 and 2017 to an annual average of $1.4 million. By comparison, the average American in the top .001 percent of earners paid about $25 million in federal income taxes each year over the same span.
The $72.9 million refund has since become the subject of a long-running battle with the I.R.S.
When applying for the refund, he cited a giant financial loss that may be related to the failure of his Atlantic City casinos. Publicly, he also claimed that he had fully surrendered his stake in the casinos.
But the real story may be different from the one he told. Federal law holds that investors can claim a total loss on an investment, as Mr. Trump did, only if they receive nothing in return. Mr. Trump did appear to receive something in return: 5 percent of the new casino company that formed when he renounced his stake.
In 2011, the I.R.S. began an audit reviewing the legitimacy of the refund. Almost a decade later, the case remains unresolved, for unknown reasons, and could ultimately end up in federal court, where it could become a matter of public record.
Business expenses and personal benefits
Mr. Trump classifies much of the spending on his personal lifestyle as the cost of business.
His residences are part of the family business, as are the golf courses where he spends so much time. He has classified the cost of his aircraft, used to shuttle him among his homes, as a business expense as well. Haircuts — including more than $70,000 to style his hair during “The Apprentice” — have fallen into the same category. So did almost $100,000 paid to a favorite hair and makeup artist of Ivanka Trump.
All of this helps to reduce Mr. Trump’s tax bill further, because companies can write off business expenses.
Seven Springs, his estate in Westchester County, N.Y., typifies his aggressive definition of business expenses.
Mr. Trump bought the estate, which stretches over more than 200 acres in Bedford, N.Y., in 1996. His sons Eric and Donald Jr. spent summers living there when they were younger. “This is really our compound,” Eric told Forbes in 2014. “Today,” the Trump Organization website continues to report, “Seven Springs is used as a retreat for the Trump family.”
Nonetheless, the elder Mr. Trump has classified the estate as an investment property, distinct from a personal residence. As a result, he has been able to write off $2.2 million in property taxes since 2014 — even as his 2017 tax law has limited individuals to writing off only $10,000 in property taxes a year.
The ‘consulting fees’
Across nearly all of his projects, Mr. Trump’s companies set aside about 20 percent of income for unexplained ‘consulting fees.’
These fees reduce taxes, because companies are able to write them off as a business expense, lowering the amount of final profit subject to tax.
Mr. Trump collected $5 million on a hotel deal in Azerbaijan, for example, and reported $1.1 million in consulting fees. In Dubai, there was a $630,000 fee on $3 million in income. Since 2010, Mr. Trump has written off some $26 million in such fees.
His daughter appears to have received some of these consulting fees, despite having been a top Trump Organization executive.
The Times investigation discovered a striking match: Mr. Trump’s private records show that his company once paid $747,622 in fees to an unnamed consultant for hotel projects in Hawaii and Vancouver, British Columbia. Ivanka Trump’s public disclosure forms — which she filed when joining the White House staff in 2017 — show that she had received an identical amount through a consulting company she co-owned.
Many of the highest-profile Trump businesses lose large amounts of money.
Since 2000, he has reported losing more than $315 million at the golf courses that he often describes as the heart of his empire. Much of this has been at Trump National Doral, a resort near Miami that he bought in 2012. And his Washington hotel, opened in 2016, has lost more than $55 million.
An exception: Trump Tower in New York, which reliably earns him more than $20 million in profits a year.
The most successful part of the Trump business has been his personal brand.
The Times calculates that between 2004 and 2018, Mr. Trump made a combined $427.4 million from selling his image — an image of unapologetic wealth through shrewd business management. The marketing of this image has been a huge success, even if the underlying management of many of the operating Trump companies has not been.
Other firms, especially in real estate, have paid for the right to use the Trump name. The brand made possible the “The Apprentice” — and the show then took the image to another level.
Of course, Mr. Trump’s brand also made possible his election as the first United States president with no prior government experience.
But his unprofitable companies still served a financial purpose: reducing his tax bill.
The Trump Organization — a collection of more than 500 entities, virtually all of them wholly owned by Mr. Trump — has used the losses to offset the rich profits from the licensing of the Trump brand and other profitable pieces of its business.
The reported losses from the operating businesses were so large that they often fully erased the licensing income, leaving the organization to claim that it earns no money and thus owes no taxes. This pattern is an old one for Mr. Trump. The collapse of major parts of his business in the early 1990s generated huge losses that he used to reduce his taxes for years afterward.
Large bills looming
With the cash from ‘The Apprentice,’ Mr. Trump went on his biggest buying spree since the 1980s.
“The Apprentice,” which debuted on NBC in 2004, was a huge hit. Mr. Trump received 50 percent of its profits, and he went on to buy more than 10 golf courses and multiple other properties. The losses at these properties reduced his tax bill.
But the strategy ran into trouble as the money from “The Apprentice” began to decline. By 2015, his financial condition was worsening.
His 2016 presidential campaign may have been partly an attempt to resuscitate his brand.
The financial records do not answer this question definitively. But the timing is consistent: Mr. Trump announced a campaign that seemed a long shot to win, but was almost certain to bring him newfound attention, at the same time that his businesses were in need of a new approach.
The presidency has helped his business.
Since he became a leading presidential candidate, he has received large amounts of money from lobbyists, politicians and foreign officials who pay to stay at his properties or join his clubs. The Times investigation puts precise numbers on this spending for the first time.
A surge of new members at the Mar-a-Lago club in Florida gave him an additional $5 million a year from the business since 2015. The roofing materials manufacturer GAF spent at least $1.5 million at Doral in 2018 as its industry was seeking changes in federal regulations. The Billy Graham Evangelistic Association paid at least $397,602 in 2017 to the Washington hotel, where it held at least one event during its World Summit in Defense of Persecuted Christians.
In his first two years in the White House, Mr. Trump received millions of dollars from projects in foreign countries, including $3 million from the Philippines, $2.3 million from India and $1 million from Turkey.
But the presidency has not resolved his core financial problem: Many of his businesses continue to lose money.
With “The Apprentice” revenue declining, Mr. Trump has absorbed the losses partly through one-time financial moves that may not be available to him again.
In 2012, he took out a $100 million mortgage on the commercial space in Trump Tower. He has also sold hundreds of millions worth of stock and bonds. But his financial records indicate that he may have as little as $873,000 left to sell.
He will soon face several major bills that could put further pressure on his finances.
He appears to have paid off none of the principal of the Trump Tower mortgage, and the full $100 million comes due in 2022. And if he loses his dispute with the I.R.S. over the 2010 refund, he could owe the government more than $100 million (including interest on the original amount).
He is personally on the hook for some of these bills.
In the 1990s, Mr. Trump nearly ruined himself by personally guaranteeing hundreds of millions of dollars in loans, and he has since said that he regretted doing so. But he has taken the same step again, his tax records show. He appears to be responsible for loans totaling $421 million, most of which is coming due within four years.
Should he win re-election, his lenders could be placed in the unprecedented position of weighing whether to foreclose on a sitting president. Whether he wins or loses, he will probably need to find new ways to use his brand — and his popularity among tens of millions of Americans — to make money.
Adding - letter from the editor
The New York Times has examined decades of President Trump’s financial records, assembling the most comprehensive picture yet of his business dealings.
By Dean Baquet
- Sept. 27, 2020Updated 5:32 p.m. ET
Today we are publishing the results of an examination of decades of personal and corporate tax records for President Trump and his businesses in the United States and abroad. The records stretch from his days as a high-profile New York real estate investor through the beginning of his time in the White House.
A team of New York Times reporters has pored over this information to assemble the most comprehensive picture of the president’s finances and business dealings to date, and we will continue our reporting and publish additional articles about our findings in the weeks ahead. We are not making the records themselves public because we do not want to jeopardize our sources, who have taken enormous personal risks to help inform the public.
We are publishing this report because we believe citizens should understand as much as possible about their leaders and representatives — their priorities, their experiences and also their finances. Every president since the mid-1970s has made his tax information public. The tradition ensures that an official with the power to shake markets and change policy does not seek to benefit financially from his actions.
Mr. Trump, one of the wealthiest presidents in the nation’s history, has broken with that practice. As a candidate and as president, Mr. Trump has said he wanted to make his tax returns public, but he has never done so. In fact, he has fought relentlessly to hide them from public view and has falsely asserted that he could not release them because he was being audited by the Internal Revenue Service. More recently, Mr. Trump and the Justice Department have fought subpoenas from congressional and New York State investigators seeking his taxes and other financial records.
Our latest findings build on our previous reporting about the president’s finances. The records show a significant gap between what Mr. Trump has said to the public and what he has disclosed to federal tax authorities over many years. They also underscore why citizens would want to know about their president’s finances: Mr. Trump’s businesses appear to have benefited from his position, and his far-flung holdings have created potential conflicts between his own financial interests and the nation’s diplomatic interests.
The reporters who examined these records have been covering the president’s finances and taxes for almost four years. Their work on this and other projects was guided by Paul Fishleder, a senior investigative editor, and Matthew Purdy, a deputy managing editor who oversees investigations and special projects at The Times.
Some will raise questions about publishing the president’s personal tax information. But the Supreme Court has repeatedly ruled that the First Amendment allows the press to publish newsworthy information that was legally obtained by reporters even when those in power fight to keep it hidden. That powerful principle of the First Amendment applies here.
Just heard the term “the long con…” sounds about right.
Re-posting this over here:
They have his taxes… and it’s huge. It shows a constant pattern of abuse, millions in losses, and that he only paid $750 his first two years as president and NOTHING for 10 of the last 15 years.
https://twitter.com/i/events/1310332632098463744
Donald J. Trump paid $750 in federal income taxes the year he won the presidency. In his first year in the White House, he paid another $750.
He had paid no income taxes at all in 10 of the previous 15 years — largely because he reported losing much more money than he made.
As the president wages a re-election campaign that polls say he is in danger of losing, his finances are under stress, beset by losses and hundreds of millions of dollars in debt coming due that he has personally guaranteed. Also hanging over him is a decade-long audit battle with the Internal Revenue Service over the legitimacy of a $72.9 million tax refund that he claimed, and received, after declaring huge losses. An adverse ruling could cost him more than $100 million.
The tax returns that Mr. Trump has long fought to keep private tell a story fundamentally different from the one he has sold to the American public. His reports to the I.R.S. portray a businessman who takes in hundreds of millions of dollars a year yet racks up chronic losses that he aggressively employs to avoid paying taxes. Now, with his financial challenges mounting, the records show that he depends more and more on making money from businesses that put him in potential and often direct conflict of interest with his job as president.
The New York Times has obtained tax-return data extending over more than two decades for Mr. Trump and the hundreds of companies that make up his business organization, including detailed information from his first two years in office. It does not include his personal returns for 2018 or 2019. This article offers an overview of The Times’s findings; additional articles will be published in the coming weeks.
The returns are some of the most sought-after, and speculated-about, records in recent memory. In Mr. Trump’s nearly four years in office — and across his endlessly hyped decades in the public eye — journalists, prosecutors, opposition politicians and conspiracists have, with limited success, sought to excavate the enigmas of his finances. By their very nature, the filings will leave many questions unanswered, many questioners unfulfilled. They comprise information that Mr. Trump has disclosed to the I.R.S., not the findings of an independent financial examination. They report that Mr. Trump owns hundreds of millions of dollars in valuable assets, but they do not reveal his true wealth. Nor do they reveal any previously unreported connections to Russia.
In response to a letter summarizing The Times’s findings, Alan Garten, a lawyer for the Trump Organization, said that “most, if not all, of the facts appear to be inaccurate” and requested the documents on which they were based. After The Times declined to provide the records, in order to protect its sources, Mr. Garten took direct issue only with the amount of taxes Mr. Trump had paid.
“Over the past decade, President Trump has paid tens of millions of dollars in personal taxes to the federal government, including paying millions in personal taxes since announcing his candidacy in 2015,” Mr. Garten said in a statement.
With the term “personal taxes,” however, Mr. Garten appears to be conflating income taxes with other federal taxes Mr. Trump has paid — Social Security, Medicare and taxes for his household employees. Mr. Garten also asserted that some of what the president owed was “paid with tax credits,” a misleading characterization of credits, which reduce a business owner’s income-tax bill as a reward for various activities, like historic preservation.
The tax data examined by The Times provides a road map of revelations, from write-offs for the cost of a criminal defense lawyer and a mansion used as a family retreat to a full accounting of the millions of dollars the president received from the 2013 Miss Universe pageant in Moscow.
Together with related financial documents and legal filings, the records offer the most detailed look yet inside the president’s business empire. They reveal the hollowness, but also the wizardry, behind the self-made-billionaire image — honed through his star turn on “The Apprentice” — that helped propel him to the White House and that still undergirds the loyalty of many in his base.
Ultimately, Mr. Trump has been more successful playing a business mogul than being one in real life.
“The Apprentice,” along with the licensing and endorsement deals that flowed from his expanding celebrity, brought Mr. Trump a total of $427.4 million, The Times’s analysis of the records found. He invested much of that in a collection of businesses, mostly golf courses, that in the years since have steadily devoured cash — much as the money he secretly received from his father financed a spree of quixotic overspending that led to his collapse in the early 1990s.
Indeed, his financial condition when he announced his run for president in 2015 lends some credence to the notion that his long-shot campaign was at least in part a gambit to reanimate the marketability of his name.
As the legal and political battles over access to his tax returns have intensified, Mr. Trump has often wondered aloud why anyone would even want to see them. “There’s nothing to learn from them,” he told The Associated Press in 2016. There is far more useful information, he has said, in the annual financial disclosures required of him as president — which he has pointed to as evidence of his mastery of a flourishing, and immensely profitable, business universe.
In fact, those public filings offer a distorted picture of his financial state, since they simply report revenue, not profit. In 2018, for example, Mr. Trump announced in his disclosure that he had made at least $434.9 million. The tax records deliver a very different portrait of his bottom line: $47.4 million in losses.
Tax records do not have the specificity to evaluate the legitimacy of every business expense Mr. Trump claims to reduce his taxable income — for instance, without any explanation in his returns, the general and administrative expenses at his Bedminster golf club in New Jersey increased fivefold from 2016 to 2017. And he has previously bragged that his ability to get by without paying taxes “makes me smart,” as he said in 2016. But the returns, by his own account, undercut his claims of financial acumen, showing that he is simply pouring more money into many businesses than he is taking out.
The picture that perhaps emerges most starkly from the mountain of figures and tax schedules prepared by Mr. Trump’s accountants is of a businessman-president in a tightening financial vise.
Most of Mr. Trump’s core enterprises — from his constellation of golf courses to his conservative-magnet hotel in Washington — report losing millions, if not tens of millions, of dollars year after year.
His revenue from “The Apprentice” and from licensing deals is drying up, and several years ago he sold nearly all the stocks that now might have helped him plug holes in his struggling properties.
The tax audit looms.
And within the next four years, more than $300 million in loans — obligations for which he is personally responsible — will come due.
Against that backdrop, the records go much further toward revealing the actual and potential conflicts of interest created by Mr. Trump’s refusal to divest himself of his business interests while in the White House. His properties have become bazaars for collecting money directly from lobbyists, foreign officials and others seeking face time, access or favor; the records for the first time put precise dollar figures on those transactions.
At the Mar-a-Lago club in Palm Beach, Fla., a flood of new members starting in 2015 allowed him to pocket an additional $5 million a year from the business. At his Doral golf resort near Miami, the roofing materials manufacturer GAF spent at least $1.5 million in 2018 even as its industry was lobbying the Trump administration to roll back “egregious” federal regulations. In 2017, the Billy Graham Evangelistic Association paid at least $397,602 to the Washington hotel, where the group held at least one event during its four-day World Summit in Defense of Persecuted Christians.
The Times was also able to take the fullest measure to date of the president’s income from overseas, where he holds ultimate sway over American diplomacy. When he took office, Mr. Trump said he would pursue no new foreign deals as president. Even so, in his first two years in the White House, his revenue from abroad totaled $73 million. And while much of that money was from his golf properties in Scotland and Ireland, some came from licensing deals in countries with authoritarian-leaning leaders or thorny geopolitics — for example, $3 million from the Philippines, $2.3 million from India and $1 million from Turkey.
He reported paying taxes, in turn, on a number of his overseas ventures. In 2017, the president’s $750 contribution to the operations of the U.S. government was dwarfed by the $15,598 he or his companies paid in Panama, the $145,400 in India and the $156,824 in the Philippines.
Mr. Trump’s U.S. payment, after factoring in his losses, was roughly equivalent, in dollars not adjusted for inflation, to another presidential tax bill revealed nearly a half-century before. In 1973, The Providence Journal reported that, after a charitable deduction for donating his presidential papers, Richard M. Nixon had paid $792.81 in 1970 on income of about $200,000.
The leak of Mr. Nixon’s small tax payment caused a precedent-setting uproar: Henceforth, presidents, and presidential candidates, would make their tax returns available for the American people to see.
“I would love to do that,” Mr. Trump said in 2014 when asked whether he would release his taxes if he ran for president. He’s been backpedaling ever since.
When he ran, he said he might make his taxes public if Hillary Clinton did the same with the deleted emails from her private server — an echo of his taunt, while stoking the birther fiction, that he might release the returns if President Barack Obama released his birth certificate. He once boasted that his tax returns were “very big” and “beautiful.” But making them public? “It’s very complicated.” He often claims that he cannot do so while under audit — an argument refuted by his own I.R.S. commissioner. When prosecutors and congressional investigators issued subpoenas for his returns, he wielded not just his private lawyers but also the power of his Justice Department to stalemate them all the way to the Supreme Court.
Mr. Trump’s elaborate dance and defiance have only stoked suspicion about what secrets might lie hidden in his taxes. Is there a financial clue to his deference to Russia and its president, Vladimir V. Putin? Did he write off as a business expense the hush-money payment to the pornographic film star Stormy Daniels in the days before the 2016 election? Did a covert source of money feed his frenzy of acquisition that began in the mid-2000s?
The Times examined and analyzed the data from thousands of individual and business tax returns for 2000 through 2017, along with additional tax information from other years. The trove included years of employee compensation information and records of cash payments between the president and his businesses, as well as information about ongoing federal audits of his taxes. This article also draws upon dozens of interviews and previously unreported material from other sources, both public and confidential.
All of the information The Times obtained was provided by sources with legal access to it. While most of the tax data has not previously been made public, The Times was able to verify portions of it by comparing it with publicly available information and confidential records previously obtained by The Times.
To delve into the records is to see up close the complex structure of the president’s business interests — and the depth of his entanglements. What is popularly known as the Trump Organization is in fact a collection of more than 500 entities, virtually all of them wholly owned by Mr. Trump, many carrying his name. For example, 105 of them are a variation of the name Trump Marks, which he uses for licensing deals.
Fragments of Mr. Trump’s tax returns have leaked out before.
Transcripts of his main federal tax form, the 1040, from 1985 to 1994, were obtained by The Times in 2019. They showed that, in many years, Mr. Trump lost more money than nearly any other individual American taxpayer. Three pages of his 1995 returns, mailed anonymously to The Times during the 2016 campaign, showed that Mr. Trump had declared losses of $915.7 million, giving him a tax deduction that could have allowed him to avoid federal income taxes for almost two decades. Five months later, the journalist David Cay Johnston obtained two pages of Mr. Trump’s returns from 2005; that year, his fortunes had rebounded to the point that he was paying taxes.
The vast new trove of information analyzed by The Times completes the recurring pattern of ascent and decline that has defined the president’s career. Even so, it has its limits.
Tax returns do not, for example, record net worth — in Mr. Trump’s case, a topic of much posturing and almost as much debate. The documents chart a great churn of money, but while returns report debts, they often do not identify lenders.
The data contains no new revelations about the $130,000 payment to Stephanie Clifford, the actress who performs as Stormy Daniels — a focus of the Manhattan district attorney’s subpoena for Mr. Trump’s tax returns and other financial information. Mr. Trump has acknowledged reimbursing his former lawyer, Michael D. Cohen, who made the payoff, but the materials obtained by The Times did not include any itemized payments to Mr. Cohen. The amount, however, could have been improperly included in legal fees written off as a business expense, which are not required to be itemized on tax returns.
No subject has provoked more intense speculation about Mr. Trump’s finances than his connection to Russia. While the tax records revealed no previously unknown financial connection — and, for the most part, lack the specificity required to do so — they did shed new light on the money behind the 2013 Miss Universe pageant in Moscow, a subject of enduring intrigue because of subsequent investigations into Russia’s interference in the 2016 election.
The records show that the pageant was the most profitable Miss Universe during Mr. Trump’s time as co-owner, and that it generated a personal payday of $2.3 million — made possible, at least in part, by the Agalarov family, who would later help set up the infamous 2016 meeting between Trump campaign officials seeking “dirt” on Mrs. Clinton and a Russian lawyer connected to the Kremlin.
In August, the Senate Intelligence Committee released a report that looked extensively into the circumstances of the Moscow pageant, and revealed that as recently as February, investigators subpoenaed the Russian singer Emin Agalarov, who was involved in planning it. Mr. Agalarov’s father, Aras, a billionaire who boasts of close ties to Mr. Putin, was Mr. Trump’s partner in the event.
The committee interviewed a top Miss Universe executive, Paula Shugart, who said the Agalarovs offered to underwrite the event; their family business, Crocus Group, paid a $6 million licensing fee and another $6 million in expenses. But while the pageant proved to be a financial loss for the Agalarovs — they recouped only $2 million — Ms. Shugart told investigators that it was “one of the most lucrative deals” the Miss Universe organization ever made, according to the report.
That is borne out by the tax records. They show that in 2013, the pageant reported $31.6 million in gross receipts — the highest since at least the 1990s — allowing Mr. Trump and his co-owner, NBC, to split profits of $4.7 million. By comparison, Mr. Trump and NBC shared losses of $2 million from the pageant the year before the Moscow event, and $3.8 million from the one the year after.
While Mr. Trump crisscrossed the country in 2015 describing himself as uniquely qualified to be president because he was “really rich” and had “built a great company,” his accountants back in New York were busy putting the finishing touches on his 2014 tax return.
After tabulating all the profits and losses from Mr. Trump’s various endeavors on Form 1040, the accountants came to Line 56, where they had to enter the total income tax the candidate was required to pay. They needed space for only a single figure.
Zero.
For Mr. Trump, that bottom line must have looked familiar. It was the fourth year in a row that he had not paid a penny of federal income taxes.
Mr. Trump’s avoidance of income taxes is one of the most striking discoveries in his tax returns, especially given the vast wash of income itemized elsewhere in those filings.
Mr. Trump’s net income from his fame — his 50 percent share of “The Apprentice,” together with the riches showered upon him by the scores of suitors paying to use his name — totaled $427.4 million through 2018. A further $176.5 million in profit came to him through his investment in two highly successful office buildings.
So how did he escape nearly all taxes on that fortune? Even the effective tax rate paid by the wealthiest 1 percent of Americans could have caused him to pay more than $100 million.
The answer rests in a third category of Mr. Trump’s endeavors: businesses that he owns and runs himself. The collective and persistent losses he reported from them largely absolved him from paying federal income taxes on the $600 million from “The Apprentice,” branding deals and investments.
That equation is a key element of the alchemy of Mr. Trump’s finances: using the proceeds of his celebrity to purchase and prop up risky businesses, then wielding their losses to avoid taxes.
Throughout his career, Mr. Trump’s business losses have often accumulated in sums larger than could be used to reduce taxes on other income in a single year. But the tax code offers a workaround: With some restrictions, business owners can carry forward leftover losses to reduce taxes in future years.
That provision has been the background music to Mr. Trump’s life. As The Times’s previous reporting on his 1995 return showed, the nearly $1 billion in losses from his early-1990s collapse generated a tax deduction that he could use for up to 18 years going forward.
The newer tax returns show that Mr. Trump burned through the last of the tax-reducing power of that $1 billion in 2005, just as a torrent of entertainment riches began coming his way following the debut of “The Apprentice” the year before.
For 2005 through 2007, cash from licensing deals and endorsements filled Mr. Trump’s bank accounts with $120 million in pure profit. With no prior-year losses left to reduce his taxable income, he paid substantial federal income taxes for the first time in his life: a total of $70.1 million.
As his celebrity income swelled, Mr. Trump went on a buying spree unlike any he had had since the 1980s, when eager banks and his father’s wealth allowed him to buy or build the casinos, airplanes, yacht and old hotel that would soon lay him low.
When “The Apprentice” premiered, Mr. Trump had opened only two golf courses and was renovating two more. By the end of 2015, he had 15 courses and was transforming the Old Post Office building in Washington into a Trump International Hotel. But rather than making him wealthier, the tax records reveal as never before, each new acquisition only fed the downward draft on his bottom line.
Consider the results at his largest golf resort, Trump National Doral, near Miami. Mr. Trump bought the resort for $150 million in 2012; through 2018, his losses have totaled $162.3 million. He has pumped $213 million of fresh cash into Doral, tax records show, and has a $125 million mortgage balance coming due in three years.
His three courses in Europe — two in Scotland and one in Ireland — have reported a combined $63.6 million in losses.
Over all, since 2000, Mr. Trump has reported losses of $315. 6 million at the golf courses that are his prized possessions.
For all of its Trumpworld allure, his Washington hotel, opened in 2016, has not fared much better. Its tax records show losses through 2018 of $55.5 million.
And Trump Corporation, a real estate services company, has reported losing $134 million since 2000. Mr. Trump personally bankrolled the losses year after year, marking his cash infusions as a loan with an ever-increasing balance, his tax records show. In 2016, he gave up on getting paid back and turned the loan into a cash contribution.
Mr. Trump has often posited that his losses are more accounting magic than actual money out the door.
Last year, after The Times published details of his tax returns from the 1980s and 1990s, he attributed the red ink to depreciation, which he said in a tweet would show “losses in almost all cases” and that “much was non monetary.”
“I love depreciation,” Mr. Trump said during a presidential debate in 2016.
Depreciation, though, is not a magic wand — it involves real money spent or borrowed to buy buildings or other assets that are expected to last years. Those costs must be spread out as expenses and deducted over the useful life of the asset. Even so, the rules do hold particular advantages for real estate developers like Mr. Trump, who are allowed to use their real estate losses to reduce their taxable income from other activities.
What the tax records for Mr. Trump’s businesses show, however, is that he has lost chunks of his fortune even before depreciation is figured in. The three European golf courses, the Washington hotel, Doral and Trump Corporation reported losing a total of $150.3 million from 2010 through 2018, without including depreciation as an expense.
To see what a successful business looks like, depreciation or not, look no further than one in Mr. Trump’s portfolio that he does not manage.
After plans for a Trump-branded mini-city on the Far West Side of Manhattan stalled in the 1990s, Mr. Trump’s stake was sold by his partner to Vornado Realty Trust. Mr. Trump objected to the sale in court, saying he had not been consulted, but he ended up with a 30 percent share of two valuable office buildings owned and operated by Vornado.
His share of the profits through the end of 2018 totaled $176.5 million, with depreciation factored in. He has never had to invest more money in the partnership, tax records show.
Among businesses he runs, Mr. Trump’s first success remains his best. The retail and commercial spaces at Trump Tower, completed in 1983, have reliably delivered more than $20 million a year in profits, a total of $336.3 million since 2000 that has done much to help keep him afloat.
Mr. Trump has an established track record of stiffing his lenders. But the tax returns reveal that he has failed to pay back far more money than previously known: a total of $287 million since 2010.
The I.R.S. considers forgiven debt to be income, but Mr. Trump was able to avoid taxes on much of that money by reducing his ability to declare future business losses. For the rest, he took advantage of a provision of the Great Recession bailout that allowed income from canceled debt to be completely deferred for five years, then spread out evenly over the next five. He declared the first $28.2 million in 2014.
Once again, his business losses mostly absolved his tax responsibilities. He paid no federal income taxes for 2014.
Mr. Trump was periodically required to pay a parallel income tax called the alternative minimum tax, created as a tripwire to prevent wealthy people from using huge deductions, including business losses, to entirely wipe out their tax liabilities.
Mr. Trump paid alternative minimum tax in seven years between 2000 and 2017 — a total of $24.3 million, excluding refunds he received after filing. For 2015, he paid $641,931, his first payment of any federal income tax since 2010.
As he settled into the Oval Office, his tax bills soon returned to form. His potential taxable income in 2016 and 2017 included $24.8 million in profits from sources related to his celebrity status and $56.4 million for the loans he did not repay. The dreaded alternative minimum tax would let his business losses erase only some of his liability.
Each time, he requested an extension to file his 1040; and each time, he made the required payment to the I.R.S. for income taxes he might owe — $1 million for 2016 and $4.2 million for 2017. But virtually all of that liability was washed away when he eventually filed, and most of the payments were rolled forward to cover potential taxes in future years.
To cancel out the tax bills, Mr. Trump made use of $9.7 million in business investment credits, at least some of which related to his renovation of the Old Post Office hotel, which qualified for a historic-preservation tax break. Although he had more than enough credits to owe no taxes at all, his accountants appear to have carved out an allowance for a small tax liability for both 2016 and 2017.
When they got to line 56, the one for income taxes due, the amount was the same each year: $750.
The $72.9 Million Maneuver
“The Apprentice” created what was probably the biggest income tax bite of Mr. Trump’s life. During the Great Recession bailout, he asked for the money back.
Testifying before Congress in February 2019, the president’s estranged personal lawyer, Mr. Cohen, recalled Mr. Trump’s showing him a huge check from the U.S. Treasury some years earlier and musing “that he could not believe how stupid the government was for giving someone like him that much money back.”
In fact, confidential records show that starting in 2010 he claimed, and received, an income tax refund totaling $72.9 million — all the federal income tax he had paid for 2005 through 2008, plus interest.
The legitimacy of that refund is at the center of the audit battle that he has long been waging, out of public view, with the I.R.S.
The records that The Times reviewed square with the way Mr. Trump has repeatedly cited, without explanation, an ongoing audit as grounds for refusing to release his tax returns. He alluded to it as recently as July on Fox News, when he told Sean Hannity, “They treat me horribly, the I.R.S., horribly.”
And while the records do not lay out all the details of the audit, they match his lawyers’ statement during the 2016 campaign that audits of his returns for 2009 and subsequent years remained open, and involved “transactions or activities that were also reported on returns for 2008 and earlier.”
Mr. Trump harvested that refund bonanza by declaring huge business losses — a total of $1.4 billion from his core businesses for 2008 and 2009 — that tax laws had prevented him from using in prior years.
But to turn that long arc of failure into a giant refund check, he relied on some deft accounting footwork and an unwitting gift from an unlikely source — Mr. Obama.
Business losses can work like a tax-avoidance coupon: A dollar lost on one business reduces a dollar of taxable income from elsewhere. The types and amounts of income that can be used in a given year vary, depending on an owner’s tax status. But some losses can be saved for later use, or even used to request a refund on taxes paid in a prior year.
Until 2009, those coupons could be used to wipe away taxes going back only two years. But that November, the window was more than doubled by a little-noticed provision in a bill Mr. Obama signed as part of the Great Recession recovery effort. Now business owners could request full refunds of taxes paid in the prior four years, and 50 percent of those from the year before that.
Mr. Trump had paid no income taxes in 2008. But the change meant that when he filed his taxes for 2009, he could seek a refund of not just the $13.3 million he had paid in 2007, but also the combined $56.9 million paid in 2005 and 2006, when “The Apprentice” created what was likely the biggest income tax bite of his life.
The records reviewed by The Times indicate that Mr. Trump filed for the first of several tranches of his refund several weeks later, in January 2010. That set off what tax professionals refer to as a “quickie refund,” a check processed in 90 days on a tentative basis, pending an audit by the I.R.S.
His total federal income tax refund would eventually grow to $70.1 million, plus $2,733,184 in interest. He also received $21.2 million in state and local refunds, which often piggyback on federal filings.
Whether Mr. Trump gets to keep the cash, though, remains far from a sure thing.
Refunds require the approval of I.R.S. auditors and an opinion of the congressional Joint Committee on Taxation, a bipartisan panel better known for reviewing the impact of tax legislation. Tax law requires the committee to weigh in on all refunds larger than $2 million to individuals.
Records show that the results of an audit of Mr. Trump’s refund were sent to the joint committee in the spring of 2011. An agreement was reached in late 2014, the documents indicate, but the audit resumed and grew to include Mr. Trump’s returns for 2010 through 2013. In the spring of 2016, with Mr. Trump closing in on the Republican nomination, the case was sent back to the committee. It has remained there, unresolved, with the statute of limitations repeatedly pushed forward.
Precisely why the case has stalled is not clear. But experts say it suggests that the gap between the sides remains wide. If negotiations were to deadlock, the case would move to federal court, where it could become a matter of public record.
The dispute may center on a single claim that jumps off the page of Mr. Trump’s 2009 tax return: a declaration of more than $700 million in business losses that he had not been allowed to use in prior years. Unleashing that giant tax-avoidance coupon enabled him to receive some or all of his refund.
The material obtained by The Times does not identify the business or businesses that generated those losses. But the losses were a kind that can be claimed only when partners give up their interest in a business. And in 2009, Mr. Trump parted ways with a giant money loser: his long-failing Atlantic City casinos.
After Mr. Trump’s bondholders rebuffed his offer to buy them out, and with a third round of bankruptcy only a week away, Mr. Trump announced in February 2009 that he was quitting the board of directors.
“If I’m not going to run it, I don’t want to be involved in it,” he told The Associated Press. “I’m one of the largest developers in the world. I have a lot of cash and plenty of places I can go.”
The same day, he notified the Securities and Exchange Commission that he had “determined that his partnership interests are worthless and lack potential to regain value” and was “hereby abandoning” his stake.
The language was crucial. Mr. Trump was using the precise wording of I.R.S. rules governing the most beneficial, and perhaps aggressive, method for business owners to avoid taxes when separating from a business.
A partner who walks away from a business with nothing — what tax laws refer to as abandonment — can suddenly declare all the losses on the business that could not be used in prior years. But there are a few catches, including this: Abandonment is essentially an all-or-nothing proposition. If the I.R.S. learns that the owner received anything of value, the allowable losses are reduced to just $3,000 a year.
And Mr. Trump does appear to have received something. When the casino bankruptcy concluded, he got 5 percent of the stock in the new company. The materials reviewed by The Times do not make clear whether Mr. Trump’s refund application reflected his public declaration of abandonment. If it did, that 5 percent could place his entire refund in question.
If the auditors ultimately disallow Mr. Trump’s $72.9 million federal refund, he will be forced to return that money with interest, and possibly penalties, a total that could exceed $100 million. He could also be ordered to return the state and local refunds based on the same claims.
In response to a question about the audit, Mr. Garten, the Trump Organization lawyer, said facts cited by The Times were incorrect, without citing specifics. He did, however, write that it was “illogical” to say Mr. Trump had not paid taxes for those three years just because the money was later refunded.
“While you claim that President Trump paid no taxes in 10 of the 15 previous years,” Mr. Garten said, “you also assert that President Trump claimed a massive refund for tens of millions for taxes he did pay. These two claims are entirely inconsistent and, in any event, not supported by the facts.”
House Democrats who have been in hot pursuit of Mr. Trump’s tax returns most likely have no idea that at least some of the records are sitting in a congressional office building. George Yin, a former chief of staff for the joint committee, said that any identifying information about taxpayers under review was tightly held among a handful of staff lawyers and was rarely shared with politicians assigned to the committee.
It is possible that the case has been paused because Mr. Trump is president, which would raise the personal stakes of re-election. If the recent Fox interview is any indication, Mr. Trump seems increasingly agitated about the matter.
“It’s a disgrace what’s happened,” he told Mr. Hannity. “We had a deal done. In fact, it was — I guess it was signed even. And once I ran, or once I won, or somewhere back a long time ago, everything was like, ‘Well, let’s start all over again.’ It’s a disgrace.”
The 20 Percent Solution
Helping to reduce Mr. Trump’s tax bills are unidentified consultants’ fees, some of which can be matched to payments received by Ivanka Trump.
Examining the Trump Organization’s tax records, a curious pattern emerges: Between 2010 and 2018, Mr. Trump wrote off some $26 million in unexplained “consulting fees” as a business expense across nearly all of his projects.
In most cases the fees were roughly one-fifth of his income: In Azerbaijan, Mr. Trump collected $5 million on a hotel deal and reported $1.1 million in consulting fees, while in Dubai it was $3 million with a $630,000 fee, and so on.
Mysterious big payments in business deals can raise red flags, particularly in places where bribes or kickbacks to middlemen are routine. But there is no evidence that Mr. Trump, who mostly licenses his name to other people’s projects and is not involved in securing government approvals, has engaged in such practices.
Rather, there appears to be a closer-to-home explanation for at least some of the fees: Mr. Trump reduced his taxable income by treating a family member as a consultant, and then deducting the fee as a cost of doing business.
The “consultants” are not identified in the tax records. But evidence of this arrangement was gleaned by comparing the confidential tax records to the financial disclosures Ivanka Trump filed when she joined the White House staff in 2017. Ms. Trump reported receiving payments from a consulting company she co-owned, totaling $747,622, that exactly matched consulting fees claimed as tax deductions by the Trump Organization for hotel projects in Vancouver and Hawaii.
Ms. Trump had been an executive officer of the Trump companies that received profits from and paid the consulting fees for both projects — meaning she appears to have been treated as a consultant on the same hotel deals that she helped manage as part of her job at her father’s business.
When asked about the arrangement, the Trump Organization lawyer, Mr. Garten, did not comment.
Employers can deduct consulting fees as a business expense and also avoid the withholding taxes that apply to wages. To claim the deduction, the consulting arrangement must be an “ordinary and necessary” part of running the business, with fees that are reasonable and market-based, according to the I.R.S. The recipient of the fees is still required to pay income tax.
The I.R.S. has pursued civil penalties against some business owners who devised schemes to avoid taxes by paying exorbitant fees to related parties who were not in fact independent contractors. A 2011 tax court case centered on the I.R.S.’s denial of almost $3 million in deductions for consulting fees the partners in an Illinois accounting firm paid themselves via corporations they created. The court concluded that the partners had structured the fees to “distribute profits, not to compensate for services.”
There is no indication that the I.R.S. has questioned Mr. Trump’s practice of deducting millions of dollars in consulting fees. If the payments to his daughter were compensation for work, it is not clear why Mr. Trump would do it in this form, other than to reduce his own tax liability. Another, more legally perilous possibility is that the fees were a way to transfer assets to his children without incurring a gift tax.
A Times investigation in 2018 found that Mr. Trump’s late father, Fred Trump, employed a number of legally dubious schemes decades ago to evade gift taxes on millions of dollars he transferred to his children. It is not possible to discern from this newer collection of tax records whether intra-family financial maneuverings were a motivating factor.
However, the fact that some of the consulting fees are identical to those reported by Mr. Trump’s daughter raises the question of whether this was a mechanism the president used to compensate his adult children involved with his business. Indeed, in some instances where large fees were claimed, people with direct knowledge of the projects were not aware of any outside consultants who would have been paid.
On the failed hotel deal in Azerbaijan, which was plagued by suspicions of corruption, a Trump Organization lawyer told The New Yorker the company was blameless because it was merely a licenser and had no substantive role, adding, “We did not pay any money to anyone.” Yet, the tax records for three Trump L.L.C.s involved in that project show deductions for consulting fees totaling $1.1 million that were paid to someone.
In Turkey, a person directly involved in developing two Trump towers in Istanbul expressed bafflement when asked about consultants on the project, telling The Times there was never any consultant or other third party in Turkey paid by the Trump Organization. But tax records show regular deductions for consulting fees over seven years totaling $2 million.
Ms. Trump disclosed in her public filing that the fees she received were paid through TTT Consulting L.L.C., which she said provided “consulting, licensing and management services for real estate projects.” Incorporated in Delaware in December 2005, the firm is one of several Trump-related entities with some variation of TTT or TTTT in the name that appear to refer to members of the Trump family.
Like her brothers Donald Jr. and Eric, Ms. Trump was a longtime employee of the Trump Organization and an executive officer for more than 200 Trump companies that licensed or managed hotel and resort properties. The tax records show that the three siblings had each drawn a salary from their father’s company — roughly $480,000 a year, jumping to about $2 million after Mr. Trump became president — though Ms. Trump no longer receives a salary. What’s more, Mr. Trump has said the children were intimately involved in negotiating and managing his projects. When asked in a 2011 lawsuit deposition whom he relied on to handle important details of his licensing deals, he named only Ivanka, Donald Jr. and Eric.
On Ms. Trump’s now-defunct website, which explains her role at the Trump Organization, she was not identified as a consultant. Rather, she has been described as a senior executive who “actively participates in all aspects of both Trump and Trump branded projects, including deal evaluation, predevelopment planning, financing, design, construction, sales and marketing, and ensuring that Trump’s world-renowned physical and operational standards are met.
“She is involved in all decisions — large and small.”
The Art of the Write-Off
Hair stylists, table linens, property taxes on a family estate — all have been deducted as business expenses.
Private jets, country clubs and mansions have all had a role in the selling of Donald Trump.
“I play to people’s fantasies,” he wrote in “Trump: The Art of the Deal.” “People want to believe that something is the biggest and the greatest and the most spectacular. I call it truthful hyperbole. It’s an innocent form of exaggeration — and a very effective form of promotion.”
If the singular Trump product is Trump in an exaggerated form — the man, the lifestyle, the acquisitiveness — then everything that feeds the image, including the cost of his businesses, can be written off on his taxes. Mr. Trump may be reporting business losses to the government, but he can still live a life of wealth and write it off.
Take, for example, Mar-a-Lago, now the president’s permanent residence as well as a private club and stage set on which Trump luxury plays out. As a business, it is also the source of millions of dollars in expenses deducted from taxable income, among them $109,433 for linens and silver and $197,829 for landscaping in 2017. Also deducted as a business expense was the $210,000 paid to a Florida photographer over the years for shooting numerous events at the club, including a 2016 New Year’s Eve party hosted by Mr. Trump.
Mr. Trump has written off as business expenses costs — including fuel and meals — associated with his aircraft, used to shuttle him among his various homes and properties. Likewise the cost of haircuts, including the more than $70,000 paid to style his hair during “The Apprentice.” Together, nine Trump entities have written off at least $95,464 paid to a favorite hair and makeup artist of Ivanka Trump.
In allowing business expenses to be deducted, the I.R.S. requires that they be “ordinary and necessary,” a loosely defined standard often interpreted generously by business owners.
Perhaps Mr. Trump’s most generous interpretation of the business expense write-off is his treatment of the Seven Springs estate in Westchester County, N.Y.
Seven Springs is a throwback to another era. The main house, built in 1919 by Eugene I. Meyer Jr., the onetime head of the Federal Reserve who bought The Washington Post in 1933, sits on more than 200 acres of lush, almost untouched land just an hour’s drive north of New York City.
“The mansion is 50,000 square feet, has three pools, carriage houses, and is surrounded by nature preserves,” according to The Trump Organization website.
Mr. Trump had big plans when he bought the property in 1996 — a golf course, a clubhouse and 15 private homes. But residents of surrounding towns thwarted his ambitions, arguing that development would draw too much traffic and risk polluting the drinking water.
Mr. Trump instead found a way to reap tax benefits from the estate. He took advantage of what is known as a conservation easement. In 2015, he signed a deal with a land conservancy, agreeing not to develop most of the property. In exchange, he claimed a $21.1 million charitable tax deduction.
The tax records reveal another way Seven Springs has generated substantial tax savings. In 2014, Mr. Trump classified the estate as an investment property, as distinct from a personal residence. Since then, he has written off $2.2 million in property taxes as a business expense — even as his 2017 tax law allowed individuals to write off only $10,000 in property taxes a year.
Courts have held that to treat residences as businesses for tax purposes, owners must show that they have “an actual and honest objective of making a profit,” typically by making substantial efforts to rent the property and eventually generating income.
Whether or not Seven Springs fits those criteria, the Trumps have described the property somewhat differently.
In 2014, Eric Trump told Forbes that “this is really our compound.” Growing up, he and his brother Donald Jr. spent many summers there, riding all-terrain vehicles and fishing on a nearby lake. At one point, the brothers took up residence in a carriage house on the property. “It was home base for us for a long, long time,” Eric told Forbes.
And the Trump Organization website still describes Seven Springs as a “retreat for the Trump family.”
Mr. Garten, the Trump Organization lawyer, did not respond to a question about the Seven Springs write-off.
The Seven Springs conservation-easement deduction is one of four that Mr. Trump has claimed over the years. While his use of these deductions is widely known, his tax records show that they represent the lion’s share of his charitable giving — about $119.3 million of roughly $130 million in personal and corporate charitable contributions reported to the I.R.S.
Two of those deductions — at Seven Springs and at the Trump National Golf Club in Los Angeles — are the focus of an investigation by the New York attorney general, who is examining whether the appraisals on the land, and therefore the tax deductions, were inflated.
Another common deductible expense for all businesses is legal fees. The I.R.S. requires that these fees be “directly related to operating your business,” and businesses cannot deduct “legal fees paid to defend charges that arise from participation in a political campaign.”
Yet the tax records show that the Trump Corporation wrote off as business expenses fees paid to a criminal defense lawyer, Alan S. Futerfas, who was hired to represent Donald Trump Jr. during the Russia inquiry. Investigators were examining Donald Jr.’s role in the 2016 Trump Tower meeting with Russians who had promised damaging information on Mrs. Clinton. When he testified before Congress in 2017, Mr. Futerfas was by his side.
Mr. Futerfas was also hired to defend the president’s embattled charitable foundation, which would be shut down in 2018 after New York regulators said it had engaged in “a shocking pattern of illegality.”
The Trump Corporation paid Mr. Futerfas at least $1.9 million in 2017 and 2018, tax records show. Also written off was at least $259,684 paid to Williams & Jensen, another law firm brought in during the same period to represent Donald Trump Jr.
A President and a Businessman
Deals in countries led by strongmen, tenants who have business before the federal government, and hotels and clubs that draw those seeking access or favor.
In May, the chairman of a trade group representing Turkish business interests wrote to Commerce Secretary Wilbur Ross urging support for increased trade between the United States and Turkey. The ultimate goal was nothing less than “reorienting the U.S. supply chain away from China.”
The letter was among three sent to cabinet secretaries by Mehmet Ali Yalcindag, chairman of the Turkey-U.S. Business Council, who noted that he had copied each one to Mr. Trump.
The president needed no introduction to Mr. Yalcindag: The Turkish businessman helped negotiate a licensing deal in 2008 for his family’s company to develop two Trump towers in Istanbul. The tax records show the deal has earned Mr. Trump at least $13 million — far more than previously known — including more than $1 million since he entered the White House, even as his onetime associate now lobbies on behalf of Turkish interests.
Mr. Yalcindag said he had “remained friendly” with Mr. Trump since their work together years ago, but that all communications between his trade group and the administration “go through formal channels and are properly disclosed.”
The ethical quandaries created by Mr. Trump’s decision to keep his business while in the White House have been documented. But the full financial measure of his extraordinary confluence of interests — a president with a wealth of business entanglements at home and in myriad geopolitical hot spots — has remained elusive.
The tax records for Mr. Trump and his hundreds of companies show precisely how much money he has received over the years, and how heavily he has come to rely on leveraging his brand in ways that pose potential or direct conflicts of interest while he is president. The records also provide the first reliable window onto his finances before 2014, the earliest year covered by his required annual disclosures, showing that his total profits from some projects outside the United States were larger than indicated by those limited public filings.
Based on the financial disclosures, which report much of his income in broad ranges, Mr. Trump’s earnings from the Istanbul towers could have been as low as $3.2 million. In the Philippines, where he licensed his name to a Manila tower nearly a decade ago, the low end of the range was $4.1 million — less than half of the $9.3 million he actually made. In Azerbaijan, he collected more than $5 million for the failed hotel project, about twice what appeared on his public filings.
It did not take long for conflicts to emerge when Mr. Trump ran for president and won. The Philippines’ strongman leader, Rodrigo Duterte, chose as a special trade envoy to Washington the businessman behind the Trump tower in Manila. In Argentina, a key person who had been involved in a Uruguayan licensing deal that earned Mr. Trump $2.3 million was appointed to a cabinet post.
The president’s conflicts have been most evident with Turkey, where the business community and the authoritarian government of President Recep Tayyip Erdogan have not hesitated to leverage various Trump enterprises to their advantage. When Turkish-American relations were at a low point, a Turkish business group canceled a conference at Mr. Trump’s Washington hotel; six months later, when the two countries were on better terms, the rescheduled event was attended by Turkish government officials. Turkish Airlines also chose the Trump National Golf Club in suburban Virginia to host an event.
More broadly, the tax records suggest other ways in which Mr. Trump’s presidency has propped up his sagging bottom line. Monthly credit card receipts, reported to the I.R.S. by third-party card processing firms, reflect the way certain of his resorts, golf courses and hotels became favored stamping grounds, if not venues for influence-trading, beginning in 2015 and continuing into his time in the White House.
The credit card data does not reflect total revenue, and is useful mainly for showing short-term ups and downs of consumer interest in a business. While two of Mr. Trump’s marquee draws — the Washington hotel in the Old Post Office and the Doral golf resort — are loaded with debt and continue to lose money, both have seen credit card transactions rise markedly with his political ascent.
At the hotel, the monthly receipts grew from $3.7 million in December 2016 shortly after it opened, to $5.4 million in January 2017 and $6 million by May 2018. At Doral, after Mr. Trump declared his candidacy in June 2015, credit card revenue more than doubled, to $13 million, for the three months through August, compared with the same period the year before.
One Trump enterprise that has been regularly profitable, and is a persistent source of concern about ethical conflicts and national security lapses, is the Mar-a-Lago club. Profits there rose sharply after Mr. Trump declared his candidacy, as courtiers eagerly joining up brought a tenfold rise in cash from initiation fees — from $664,000 in 2014 to just under $6 million in 2016, even before Mr. Trump doubled the cost of initiation in January 2017. The membership rush allowed the president to take $26 million out of the business from 2015 through 2018, nearly triple the rate at which he had paid himself in the prior two years.
Some of the largest payments from business groups for events or conferences at Mar-a-Lago and other Trump properties have come since Mr. Trump became president, the tax records show.
At Doral, Mr. Trump collected a total of at least $7 million in 2015 and 2016 from Bank of America, and at least $1.2 million in 2017 and 2018 from a trade association representing food retailers and wholesalers. The U.S. Chamber of Commerce paid Doral at least $406,599 in 2018.
Beyond one-time payments for events or memberships, large corporations also pay rent for space in the few commercial buildings Mr. Trump actually owns. Walgreens, the pharmacy giant that resolved an antitrust matter before federal regulators in 2017, pays $3.4 million a year for a lease at 40 Wall Street, a Trump-owned office building in Manhattan.
Another renter at 40 Wall, for $2.5 million a year, is Atane Engineers, which changed its name in 2018 after a corruption scandal that culminated in two former top executives’ pleading guilty to paying bribes for city infrastructure contracts. Despite the criminal case — which landed the company on New York State’s list of “non-responsible entities” that require a waiver to obtain state contracts — the newly christened Atane registered as an eligible federal contractor with no restrictions listed in its file.
Rental income over all at 40 Wall has risen markedly, from $30.5 million in 2014 to $43.2 million in 2018. The tax records show that the cost of existing leases there has risen. and at least four law firms appear to have moved in since Mr. Trump ran for president.
In addition to buildings he owns outright, there is the president’s stake in the Vornado partnerships that control two valuable office towers — 1290 Sixth Avenue in Manhattan and 555 California Street in San Francisco. Vornado’s chief executive, Steven Roth, is a close Trump ally recently named to the White House economic recovery council. Last year, the president appointed Mr. Roth’s wife, Daryl Roth, to the Kennedy Center board of trustees.
Vornado tenants include a roster of blue-chip firms paying multimillion-dollar leases, many of whom regularly do business with, lobby or are regulated by the federal government. Among the dozens of leases paid in 2018 to Mr. Trump’s Vornado partnerships, according to his tax records, were $5.8 million from Goldman Sachs; $3.1 million from Microsoft; $32.7 million from Neuberger Berman, an investment management company; and $8.8 million from the law firm Kirkland & Ellis.
The Gathering Storm
Threats are converging: mounting business losses, the looming I.R.S. audit and personally guaranteed debts coming due.
When Mr. Trump glided down a gilded Trump Tower escalator to kick off his presidential campaign in June 2015, his finances needed a jolt.
His core businesses were reporting mounting losses — more than $100 million over the previous two years. The river of celebrity-driven income that had long buoyed them was running dry.
If Mr. Trump hoped his unlikely candidacy might, at least, revitalize his brand, his barrage of derogatory remarks about immigrants quickly cost him two of his biggest and easiest sources of cash — licensing deals with clothing and mattress manufacturers that had netted him more than $30 million. NBC, his partner in Miss Universe — source of nearly $20 million in profits — announced that it would no longer broadcast the pageant; he sold it soon after.
Now his tax records make clear that he is facing a battery of threats to his business and his own financial well-being.
Over the past decade, he appears to have filled the cash-flow gaps with a series of one-shots that may not be available again.
In 2012, he took out a $100 million mortgage on the commercial space in Trump Tower. He took nearly the entire amount as a payout, his tax records show. His company has paid more than $15 million in interest on the loan, but nothing on the principal. The full $100 million comes due in 2022.
In 2013, he withdrew $95.8 million from his Vornado partnership account.
And in January 2014, he sold $98 million in stocks and bonds, his biggest single month of sales in at least the last two decades. He sold $54 million more in stocks and bonds in 2015, and $68.2 million in 2016. His financial disclosure released in July showed that he had as little as $873,000 in securities left to sell.
Mr. Trump’s businesses reported cash on hand of $34.7 million in 2018, down 40 percent from five years earlier.
What’s more, the tax records show that Mr. Trump has once again done what he says he regrets, looking back on his early 1990s meltdown: personally guaranteed hundreds of millions of dollars in loans, a decision that led his lenders to threaten to force him into personal bankruptcy.
This time around, he is personally responsible for loans and other debts totaling $421 million, with most of it coming due within four years. Should he win re-election, his lenders could be placed in the unprecedented position of weighing whether to foreclose on a sitting president.
There is, however, a tax benefit for Mr. Trump. While business owners can use losses to avoid taxes, they can do so only up to the amount invested in the business. But by taking personal responsibility for that $421 million in debt, Mr. Trump would be able to declare that amount in losses in future years.
The balances on those loans had not been paid down by the end of 2018. And the businesses carrying the bulk of the debt — the Doral golf resort ($125 million) and the Washington hotel ($160 million) — are struggling, which could make it difficult to find a lender willing to refinance it.
The unresolved audit of his $72.9 million tax refund hangs over his head.
The broader economy promises little relief. Across the country, brick-and-mortar stores are in decline, and they have been very important to Trump Tower, which has in turn been very important to Mr. Trump. Nike, which rented the space for its flagship store in a building attached to Trump Tower and had paid $195.1 million in rent since the 1990s, left in 2018.
The president’s most recent financial disclosure reported modest gains in 2019. But that was before the pandemic hit. His already struggling properties were shut down for several months earlier this year. The Doral resort asked Deutsche Bank to allow a delay on its loan payments. Analysts have predicted that the hotel business will not fully recover until late 2023.
Mr. Trump still has assets to sell. But doing so could take its own toll, both financial and to Mr. Trump’s desire to always be seen as a winner. The Trump family said last year that it was considering selling the Washington hotel, but not because it was losing money.
In Mr. Trump’s telling, any difficulty in his finances has been caused by the sacrifices made for his current job.
“They say, ‘Trump is getting rich off our nation,’” he said at a rally in Minneapolis last October. “I lose billions being president, and I don’t care. It’s nice to be rich, I guess, but I lose billions.”
The publication of Donald Trump’s records by the New York Times is one of the biggest bombshells to hit an unprecedented 2020 election campaign already been hit by a litany of scandals, a bitter fight over a supreme court nomination and a pandemic in which 7m Americans have been infected and more than 200,000 have died, during a bungled federal response.
Trump says overturning Roe v Wade ‘possible’ with Barrett on supreme court
The president’s taxes have long been the great white whale of political reporters in America as well as prosecutors keen to find evidence of wrongdoing. Democrats too were eager to seize on them as a potentially game-changing stick with which to beat the Trump campaign.
The Times, with its shock report published on Sunday evening, appears to have won the race. Its publication of details from the documents could send shock waves through the campaign as the key first debate between Trump and challenger Joe Biden looms, in Ohio on Tuesday night.
Here are some of its key findings:
Trump pays little tax
The Times reported that Trump paid no federal income taxes in 11 of 18 years the newspaper looked at. In 2017, after he became president, his tax bill was only $750. This is despite Trump often railing against taxes in America and ushering through a series of tax cuts that critics say mostly helps the rich and big business.
The Times said of Trump’s immediate predecessors: “Barack Obama and George W Bush each regularly paid more than $100,000 a year.”
A long audit – with potentially hefty costs
Trump is involved in a decade-long audit with the Internal Revenue Service over a $72.9m tax refund he claimed, and received, after declaring huge losses. A ruling against him could cost him more than $100m, the Times reported.
It added: “In 2011, the IRS began an audit reviewing the legitimacy of the refund. Almost a decade later, the case remains unresolved, for unknown reasons, and could ultimately end up in federal court, where it could become a matter of public record.”
Ivanka helps reduce Trump’s tax burden
The president’s oldest daughter, while working as an employee of the Trump Organization, appears to have received “consulting fees” that helped reduce the family’s tax bill, the Times said. Such a revelation might further tarnish the reputation of Ivanka, a senior White House adviser married to another, Jared Kushner, who often tries to distance herself from some of the biggest scandals of her father’s administration. She is widely believed to harbor political ambitions of her own after Trump leaves office.
The Times reported: “Trump’s private records show that his company once paid $747,622 in fees to an unnamed consultant for hotel projects in Hawaii and Vancouver, British Columbia. Ivanka Trump’s public disclosure forms – which she filed when joining the White House staff in 2017 – show that she had received an identical amount through a consulting company she co-owned.”
Trump businesses lose money
The Times was brutal in its assessment of Trump’s businesses, about which he often boasts and on the back of which he sought to promote a carefully curated image as a master businessman. “Trump’s core enterprises – from his constellation of golf courses to his conservative-magnet hotel in Washington – report losing millions, if not tens of millions, of dollars year after year,” the newspaper said.
It detailed how since 2000, Trump has reported losing more than $315m at his golf courses, with much of that coming from Trump National Doral in Florida. His Washington hotel, which opened in 2016 and has been the subject of much speculation regarding federal ethics laws, has lost more than $55m.
Trump has a big bill to pay
The newspaper also reported that Trump is facing a major financial bill, as within the next four years, hundreds of millions of dollars in loans will come due. The paper said Trump is personally responsible for many of those obligations.
The paper reported: “In the 1990s, Mr Trump nearly ruined himself by personally guaranteeing hundreds of millions of dollars in loans, and he has since said that he regretted doing so. But he has taken the same step again, his tax records show. He appears to be responsible for loans totaling $421m, most of which is coming due within four years.”
In a blunt summary of the problem, the Times speculated: “Should he win re-election, his lenders could be placed in the unprecedented position of weighing whether to foreclose on a sitting president.”
Trump businesses profit from his presidency
The issue of whether Trump’s businesses benefit from his position in the White House has been one of the long-running themes of reporting on the Trump presidency. The global nature of the Trump Organization and its portfolio of hotels, resorts and other interests has left Trump open to speculation that lobbyists, business leaders and foreign powers could spend money in them to try and peddle influence in the US.
The Times report on his tax returns is clear that Trump’s businesses have indeed benefited from his political career.
“Since he became a leading presidential candidate, he has received large amounts of money from lobbyists, politicians and foreign officials who pay to stay at his properties or join his clubs,” the newspaper reported, before detailing monies paid at his Mar-a-Largo resort in Florida, his Washington hotel and other locations.
But his financial records indicate that he may have as little as $873,000 left to sell.
He will soon face several major bills that could put further pressure on his finances.
He appears to have paid off none of the principal of the Trump Tower mortgage, and the full $100 million comes due in 2022. And if he loses his dispute with the I.R.S. over the 2010 refund, he could owe the government more than $100 million (including interest on the original amount).
He is personally on the hook for some of these bills.
In the 1990s, Mr. Trump nearly ruined himself by personally guaranteeing hundreds of millions of dollars in loans, and he has since said that he regretted doing so. But he has taken the same step again, his tax records show. He appears to be responsible for loans totaling $421 million, most of which is coming due within four years.
Should he win re-election, his lenders could be placed in the unprecedented position of weighing whether to foreclose on a sitting president. Whether he wins or loses, he will probably need to find new ways to use his brand — and his popularity among tens of millions of Americans — to make money.
The President is fraud
This.
How can you dig out of this one. Jared had to use a bunch of WH contacts to help him sell his 666 Fifth avenue building, right? Jared 666 Fifth Ave sale Aug 2018
Trumps have been talking about selling the Trump International Hotel in DC, but hardly worth any huge amount of money?
Who do they owe it to? Must be outside countries…or oligarchs.
Who’s spilling the tea here? Wondering if it was anyone having to do with the IRS Whistleblower or would Mary Trump have access to T’s taxes with her current lawsuit against Donald and her Aunt MaryAnne?
https://www.bostonmagazine.com/news/2019/10/04/richard-neal-irs-whistleblower-complaint/
What does the complaint say?
Unlike the intelligence whistleblower complaint, the tax whistleblower complaint has not been made public, so we don’t have a lot of information on what exactly it contains. However, Neal said in a letter to Treasury Secretary Steve Mnuchin (more on that later) that the complaint includes “credible” allegations of “evidence of possible misconduct” when it comes to the audit of Trump or Pence’s taxes. More specifically, Neal says the complaint outlines potential “inappropriate efforts to influence” the audit.
“This is a grave charge that appreciably heightens the Committee’s concerns about the absence of appropriate safeguards as part of the mandatory audit program and whether statutory codification of such program or other remedial, legislative measures are warranted,” Neal wrote.
Additionally, the Washington Post reports that the whistleblower alleges it was at least one Treasury Department official who interfered in the audit process.
The Post reporting also clarifies that the complaint is based upon something that the IRS official was told occurred, rather than witnessed directly—thus, the accusations from the right that this is merely hearsay.
Just so many revelations.
Democrats have wasted little time responding to The New York Times’ bombshell that President Trump paid just $750 in federal income taxes in 2016 and 2017.
" The New York Times reporting provides a window into the extraordinary measures that President Trump has used to game the tax code and avoid paying his fair share of taxes, while hard working Americans are," House Speaker Nancy Pelosi, D-Calif., said in a statement.
“It is a sign of President Trump’s disdain for America’s working families that he has spent years abusing the tax code while passing a GOP Tax Scam for the rich that gives 83% of the benefits to the wealthiest 1%,” she added.
Senate Minority Leader Chuck Schumer, D-N.Y., tweeted a “raise your hand” emoji, “if you paid more in federal income tax than President Trump.”
And Rep. Alexandria Ocasio-Cortez, D-N.Y., tweeted that she “paid thousands of dollars a year in taxes as a bartender”, and said Trump “contributed less to funding our communities than waitresses & undocumented immigrants.”
The report adds a new element into what has been a remarkably stable presidential race according to polling, which has consistently shown Democratic nominee Joe Biden with a national lead approaching double digits over Trump.
The Biden campaign was also quick to jump on the story, releasing a video ad on Twitter, comparing what it said were average taxes paid by teachers, firefighters and nurses, all substantially more than $750.
The shocking claim that Donald Trump paid only $750 in federal taxes has dominated headlines after a New York Times report into his financial affairs, but it is far from the only surprising sum exposed by the documents. Here are some of the key figures:
$750
Federal tax Trump paid in 2016, when he won the presidency.
$750
Federal tax Trump paid the following year.
Zero
Federal tax paid by Trump in 10 of the previous 15 years, including 2014 and 2015.
$100,000 a year
By comparison, the kind of figure regularly paid in federal taxes by Trump’s predecessors, Barack Obama and George W Bush
$70,000
Paid to style Trump’s hair for television, claimed as expenses.
$95,464
The total sum nine of Trump’s companies have paid as expenses to style Ivanka Trump’s hair.
$210,000
The amount written off as expenses to hire a photographer taking photographs at the Mar-a-Lago club.
$26 m
“Consulting fees” charged as a business expense between 2010 and 2018, at least some of which appears to have been directed to a company co-owned by Ivanka Trump.
$434 m
What Trump declared his earnings to be in the 2018 presidential public annual financial disclosure.
$47.4 m in losses
What he had declared to the Internal Revenue Service (IRS) for tax purposes over the same period.
$421 m
Outstanding loans that Trump owes, most of which becomes due within the next four years.
$73 m
Revenue generated from outside the US, presenting a potential conflict of interest with US foreign policy.
$13 m
Earned in one licensing deal for Trump Towers in Istanbul, including $1m since he became president.
$72.9 m
The tax refund Trump claimed and was awarded, which is now the subject of a decade-long audit battle with the IRS. It covered all the federal tax he had paid between 2005 and 2008.
$1.4 m
The annual average amount of federal tax paid by Trump between 2000 and 2017. It compares with the $25m in federal income taxes the average American with similar declared earnings could expect to pay.
$100 m
The amount Trump could now have to pay back to the IRS, including penalties, if it finds against him in the audit.
$315 m
The sum reported “lost” by Trump’s golf courses since 2000.
‘Tens of millions of dollars’
What Alan Garten, a lawyer for the Trump Organization, claims the president has paid in personal taxes since 2015.
More than 500
The number of individual companies, many bearing the Trump name, that make up the nebulous corporate network generally referred to as the Trump Organization.
The New York Times just published one of the most important stories of the past five years.
The story is about President Trump’s taxes. This is an “emperor has no clothes” moment for the president and the beginning of a long, drawn-out news cycle about his finances.
As CNN’s John Harwood said during Sunday evening’s breaking news coverage, the story is “a devastating picture of a president who is bleeding financially and is depending on his presidency to prop him up financially.”
The Times’ front page on Monday has a six-column, two-line headline — which is just about as big as it gets in print. The headline says “PRESIDENT’S TAXES CHART CHRONIC LOSSES, AUDIT BATTLE AND INCOME TAX AVOIDANCE.”
A public service
Now, when I say the story is “important,” I’m not saying it is going to change many minds. That was the go-to defense by some Trump supporters on Sunday: That no one in their world will care about the revelations.
As Oliver Darcy said in a text message to me, “Trump’s supporters who are locked in the Fox bubble where this will be handled with kid gloves. And they have been conditioned to believe that NYT is an arm of the Democratic machine.”
Perhaps he’s right. Most minds are made up and some votes are already being cast. But the dollar figures in the story are still astonishing. I think the tax avoidance story is singularly important because it fills in a big part of Trump’s portrait. Voters and reporters and historians should have the fullest possible portrait of both Trump and Joe Biden. So the NYT has performed a real public service.
Trump’s predictable smears
Mere minutes after the Times story was published, Trump began a pre-planned press conference by rambling about the Bidens and other subjects.
When reporters like CNN’s Jeremy Diamond asked about the tax reporting, Trump derided it as “fake news” and proceeded to lie about The Times. Then he reached for his friendly right-wing lifelines, the same way game show contestants try to phone-a-friend for help. It’s difficult to ascertain who asked what, but the softball players included John Gizzi of Newsmax, Christina Bobb of One America News, and a to-be-determined member of the foreign press.
After the press conference, CNN anchor Ana Cabrera pointed out that Trump resorted to right-wing questioners and said that he “could solve all this by releasing his tax returns, by making them public…”
Behind the scenes
This scoop was very, very closely held within the NYT — just like the paper’s 2018 Trump tax expose was. I’m told that the reporters on the story have been working “around the clock” ever since they obtained the trove of tax-return data. Sunday’s article was described as an “overview” with this note: “Additional articles will be published in the coming weeks.” That’s what Times reporters are saying in private as well: There’s more to come…
The NYT says it won’t publish the actual tax return documents
Quoting from executive editor Dean Baquet’s letter to readers: “We will continue our reporting and publish additional articles about our findings in the weeks ahead. We are not making the records themselves public because we do not want to jeopardize our sources, who have taken enormous personal risks to help inform the public.”
Baquet’s letter doubled as a defense of The Times against inevitable Trumpworld attacks: “Some will raise questions about publishing the president’s personal tax information. But the Supreme Court has repeatedly ruled that the First Amendment allows the press to publish newsworthy information that was legally obtained by reporters even when those in power fight to keep it hidden. That powerful principle of the First Amendment applies here.”
Expect Fox’s coverage to look like this
Oliver Darcy emails: “Anytime there is a big story in the news that Fox News has to cover on its supposed ‘straight news’ programs, the network does so by leading with Trump’s denial. Sunday evening was no different. The headline on Fox’s website focused solely on Trump’s denial and bashing of NYT. Elsewhere in right-wing media, some homed in on the line from NYT’s story that said the documents it obtained do not ‘reveal any previously unreported connections to Russia.’ Expect these to be the angles the pro-Trump media takes in the next 24 hours…”
Meanwhile, the Drudge Report continues to zing Trump. The banner headline on Sunday evening read, “THE FAKE BILLIONAIRE?”
Trump flacks like Mark Levin are already claiming that the leak is the real scandal. Expect to hear lots more of that…
Notes and quotes
– One of the reasons why it matters: “The tax allegations go to the very heart of Trump’s appeal,” Jill Colvin noted… (AP)
– Another reason why it matters: If Trump “loses the election,” former prosecutor Michael Bromwich wrote, “he faces federal and state prosecution for bank fraud, tax fraud, wire fraud, and mail fraud, as does his entire family…” (Twitter)
– The NYT story says Trump has “more than $300 million in loans” coming due in the next four years. One of Monday’s biggest unanswered questions is, as Jim Sciutto put it, “to whom exactly does the Commander in Chief owe this money to?” (Twitter)
– Former NYTer Michael Luo, now at The New Yorker, tweeted: “Arguably, no other news org in the world could invest as much time/resources into Trump tax investigations as NYT has. Maybe Washington Post and ProPublica too? Three reporters; unlimited time. Support investigative journalism as a bulwark of democracy.”
– WaPo media reporter Paul Farhi: “The subtext of the NYT report is the crucial importance of ‘The Apprentice’ to Trump’s finances and ultimately his political career. No ‘Apprentice,’ no cash flow to prop up many loss-making businesses. No ‘Apprentice,’ no myth of Trump as a financial whiz to run on.” (Twitter)
– Michael Cohen is taking a victory lap… (Twitter)
– The Biden campaign is selling “I paid more income taxes than Donald Trump” stickers… (Twitter)
– Public opinion researcher Gary Langer, summarizing his latest poll for ABC/WaPo, found a “net total of 5% of likely voters who can be considered movable — a thin slice, albeit potentially enough to matter in some states…” (ABC)
I’m not a tax preparer anymore. After seeing that my hard-working, middle class clients owed more money than ever to the IRS after Trump’s “tax cuts,” I just couldn’t do it anymore. I sold my business of thirty years to a local CPA firm and prepared to take my life in a completely different direction.
So of course, here I am, almost a year later, talking about taxes again. If you haven’t read The New York Times report on the Trump tax data they’ve obtained, you should.
In March of 2019 I tweeted a thread about what we could learn about Trump if he released his tax returns. Tax returns tell us things like how much the taxpayer earns, how much they pay in property tax, whether they had any large medical bills, and how charitable they are.
The New York Times only summarized the tax data they studied, so there are still many questions to be answered. It should be noted that, as in most things in TrumpWorld, there is a fine line between illegal and immoral or unethical. What the president’s tax returns show are huge losses used to offset income. The IRS is investigating whether a $72.9M refund that was claimed by and paid to Trump was legitimate. In the world of commercial real estate, there can be legitimate losses the are used to offset income in some years. The question is whether Trump’s losses were legitimate or manufactured for tax purposes.
I have had many conversations with clients about what constitutes deductible business expenses instead of non-deductible personal expenses. I once had a client insist that his dog’s food and vet bills were deductible business expenses because the dog protected his home office. (Since I have three big dogs, I would love for that to be true, but it’s not).
Trump seems to take that kind of logic to the extreme. Performers can deduct personal care expenses if their job requires them to look a certain way that is different than they would normally appear. It’s the same logic that says uniforms are tax deductible, but if you wear normal jeans and a shirt to work, that is not a deductible expense. It is hard to imagine anyone having $70,000 in hair stylist expenses that only relate to their job.
The president has also taken deductions for items most people would consider personal expenses like costs related to his residences, including property taxes. The property tax deductions are especially significant because the 2017 tax bill limited the amount that taxpayers could deduct for all state tax expenses to $10,000. This meant that most homeowners in highly taxed states like California or New York weren’t able to deduct any property tax expenses.
Another interesting revelation is that Trump has written off consulting fees of almost $26 million. His daughter Ivanka, who was a salaried employee of the Trump Organization, appears to have received at least some of these fees. In theory, the consultant reports those payments as income on their annual income tax returns. Unless we see Ivanka’s tax returns, we won’t be able to tell if she reported these payments correctly.
When I’m reviewing a candidate’s tax return, I always look at their charitable donations. Knowing how much a candidate donates to charity gives me an indication of their values and how much concern they have for others. What The New York Times story shows is that when a community neighboring a large estate Trump owned wouldn’t let him develop it into a golf course and private homes, the president signed a a deal with a land conservancy in which he agreed not to develop most of the property. This allowed him to claim a charitable tax deduction. Trump’s tax records show that he has used this strategy to claim charitable tax deductions for not developing property he owns four times over the years. It is apparent that the president considers charitable donations only in terms of how they can help him in some way. A different but comparable circumstance is the way that he lied about the pandemic, because telling the truth could be harmful to his run for reelection. Are these really the values we want in a president?
Hopefully the New York Times will release the tax return data they used to write these articles soon. It’s important information that should be available to every voter. Until they do, I’m going to return to not being a tax preparer.
It is easy to see how T would be compromised which could be targeted by foreign countries. It is unlimited.
What trade-offs would a president with this level of indebtedness be willing to make to save face?
…
Step away from the tragicomic tawdriness and grift that the tax returns define, however, and focus on what they reveal about Trump as the most powerful man in the world and occupant of the Oval Office.
…
Due to his indebtedness, his reliance on income from overseas and his refusal to authentically distance himself from his hodgepodge of business, Trump represents a profound national security threat – a threat that will only escalate if he’s re-elected. The tax returns also show the extent to which Trump has repeatedly betrayed the interests of many of the average Americans who elected him and remain his most loyal supporters.
According to the Times, Trump has about $421 million in debts which he has personally guaranteed and which are coming due over the next several years. This is consistent with earlier reporting about how much debt he carries, a chunk of which could be gleaned from the personal financial disclosures he is required to file with the federal government. But Trump’s overall indebtedness is greater than the Times tally, I believe.
Russ Choma reported in Mother Jones last summer that Trump’s debts were nearly $500 million and would come due in relatively short order, pressuring the president’s finances. But Trump’s debts are even bigger than that, and he’s worked hard to keep them hidden for decades. Dan Alexander, a senior editor at Forbes, has been covering Trump’s business interests since 2016 and has a new book out about the president’s financial conflicts of interest, “White House Inc.” Alexander, in a helpful tally he shared Sunday evening, estimates Trump’s total indebtedness to be about $1.1 billion. Now that’s more like it.
Trump has been bloviating about being worth $10 billion ever since he entered the 2016 presidential race, a figure that simply isn’t true. He’s worth a fraction of that amount, and the larger his indebtedness becomes, the more strain it puts on his assets. The Covid-19 pandemic has taken a particularly brutal toll on the sectors in which the Trump Organization operates — real estate, travel and leisure. If Trump is unable to meet his debt payments, he’s either going to have to sell assets or get bailed out by a friend with funds. Trump has never liked to sell anything, even when it’s hemorrhaging money. So if he’s tempted to save himself by getting a handout, that makes him a mark.
If Trump was still just a reality TV oddity, that wouldn’t be earthshaking. But he’s president, and the trade-offs someone like him would be willing to make to save his face and his wallet taint every public policy decision he makes – including issues around national security. If Vladimir Putin, for example, can backchannel a loan or a handout to the president, how hard is Trump going to be on Russia? Not that we should worry about Trump’s relationship with Putin. That’s just a hypothetical question.
I am wary of the source here:
From the back seat of a stretch limousine heading to meet the first contestants for his new TV show “The Apprentice,” Donald J. Trump bragged that he was a billionaire who had overcome financial hardship.
“I used my brain, I used my negotiating skills and I worked it all out,” he told viewers. “Now, my company is bigger than it ever was and stronger than it ever was.”
It was all a hoax.
Months after that inaugural episode in January 2004, Mr. Trump filed his individual tax return reporting $89.9 million in net losses from his core businesses for the prior year. The red ink spilled from everywhere, even as American television audiences saw him as a savvy business mogul with the Midas touch.
Twelve years later, that image of the self-made, self-saved mogul, beamed into the national consciousness, would help fuel Mr. Trump’s improbable election to the White House.
But while the story of “The Apprentice” is by now well known, the president’s tax returns reveal another grand twist that has never been truly told — how the popularity of that fictional alter ego rescued him, providing a financial lifeline to reinvent himself yet again. And then how, in an echo of the boom-and-bust cycle that has defined his business career, he led himself toward the financial shoals he must navigate today.
Mr. Trump’s genius, it turned out, wasn’t running a company. It was making himself famous — Trump-scale famous — and monetizing that fame.
By analyzing the tax records, The New York Times was able to place a value on Mr. Trump’s celebrity. While the returns show that he earned some $197 million directly from “The Apprentice” over 16 years — roughly in line with what he has claimed — they also reveal that an additional $230 million flowed from the fame associated with it.
The show’s big ratings meant that everyone wanted a piece of the Trump brand, and he grabbed at the opportunity to rent it out. There was $500,000 to pitch Double Stuf Oreos, another half-million to sell Domino’s Pizza and $850,000 to push laundry detergent.
There were seven-figure licensing deals with hotel builders, some with murky backgrounds, in former Soviet republics and other developing countries. And there were schemes that exploited misplaced trust in the TV version of Mr. Trump, who, off camera, peddled worthless get-rich-quick nostrums like “Donald Trump Way to Wealth” seminars that promised initiation into “the secrets and strategies that have made Donald Trump a billionaire.”
Just as, years before, the money Mr. Trump secretly received from his father allowed him to assemble a wobbly collection of Atlantic City casinos and other disparate enterprises that then collapsed around him, the new influx of cash helped finance a buying spree that saw him snap up golf resorts, a business not known for easy profits. Indeed, the tax records show that his golf properties have been hemorrhaging millions of dollars for years.
In response to a request for comment, a White House spokesman, Judd Deere, did not dispute any specific facts. Instead, he delivered a broad attack, calling the article “fake news” and “yet another politically motivated hit piece full of inaccurate smears” appearing “before a presidential debate.”
Unlocking the mysteries of Mr. Trump’s wealth has been attempted many times with varying degrees of success — an exercise made difficult by the opaque nature of his businesses, his penchant for exaggerations and lies, and his willingness to threaten or sue those who question his rosy narratives. He has gone to extraordinary lengths to maintain secrecy, most notably his refusal to honor 40 years of presidential tradition and release his tax returns.
This article is based on an examination of data from those returns, which include personal and business tax filings for Mr. Trump and his companies spanning more than two decades. Every dollar is disclosed for the first time: $8,768,330 paid to him by ACN, a multilevel marketing company that was accused of taking advantage of vulnerable investors; $50,000 from the Lifetime channel for a “juicy nighttime soap” that never materialized; $5,026 in net income from a short-lived mortgage business; and $15,286,244 from licensing his name to a line of mattresses.
In addition, it draws on interviews and previously unreported material from other sources, including hundreds of internal documents from Bayrock Group, an influential early licensing partner whose ties to Russia would come back to haunt the president as questions swirled about his own dealings there.
Together, the new information provides the most authoritative look yet at a critical period in Mr. Trump’s business career that laid the foundation, and provided something of a preview, of his personality-based and fact-bending presidency.
A Second Chance
As trouble loomed in the new millennium, Mr. Trump found an opportunity that would change his life forever.
Divorced for the second time, and coming off the failure of his Atlantic City casinos, Mr. Trump faced escalating money problems and the prospect of another trip to bankruptcy court. On his income tax returns, he reported annual net losses throughout the 1990s, some of it carried forward year to year, a tide that would swell to $352.8 million at the end of 2002.
Few people knew this, however, because he kept up the relentless self-promotion that had served him well: a half-serious 2000 presidential campaign that lasted four months but got him on Jay Leno; a TV ad touting McDonald’s new $1 “Big N’ Tasty” burger; another ghostwritten book.
But if Mr. Trump was still living off his residual fame, his biggest splashes were behind him. Something had to change. And as fate would have it, Mr. Trump got a boost from an unexpected source, one that would do much to shape his future, if not that of the country itself.
Mark Burnett, a British television producer best known for the hit series “Survivor,” approached him with an idea for a different reality show, this one based in a boardroom. In Mr. Burnett’s vision, a cast of wannabe entrepreneurs would come to New York and compete for the approval of the Donald, with the winner to work on a Trump project. Mr. Trump eagerly agreed to host “The Apprentice” and went on to ham it up as the billionaire kingmaker, yelling “You’re fired” each week until one contestant was left.
Some of Mr. Burnett’s staff members wondered how a wealthy businessman supposedly running a real estate empire could spare the time, but they soon discovered that not everything in Mr. Trump’s world was as it appeared.
“We walked through the offices and saw chipped furniture,” Bill Pruitt, one of the producers, told The New Yorker in 2018. “We saw a crumbling empire at every turn. Our job was to make it seem otherwise.”
Mr. Burnett wasted no time spinning the illusion of a successful and high-minded Mr. Trump, telling The Times in October 2003 that the new show was all about “Donald Trump giving back” by educating the public on how his can-do spirit had provided jobs and economic security.
“What makes the world a safe place right now?” Mr. Burnett said. “I think it’s American dollars, which come from taxes, which come because of Donald Trump.”
Selling the Image
A surge in popularity brought Mr. Trump’s reality-TV persona to ring tones, hamburgers, even laundry detergent.
Mr. Trump himself had not owed federal income taxes in years, thanks to the regular large business losses that smothered whatever income he had.
But the ratings success of “The Apprentice,” and the advertising dollars it generated, quickly pushed him into the unfamiliar position of declaring positive adjusted gross income on his I.R.S. Form 1040. After netting $11.9 million from the show in its first year, he really hit the jackpot in 2005 with $47.8 million, the tax records show. He made so much that over three years he paid a total of $70. 1 million in income taxes (later refunded, with interest, via an aggressive accounting maneuver now under audit).
The windfall, which continued — though in ever-dwindling amounts — until Mr. Trump became president, reflected an unusual arrangement that entitled him, as the show’s star, to half its profits. That included money from product placements on each episode that sometimes numbered more than 100 a month, with household names like Pepsi paying millions of dollars split between Mr. Burnett and Mr. Trump.
When they conceived the idea in 2002, however, the show’s success was far from certain. If nothing else, as Mr. Trump told an NBC executive at the time, it would allow him to market his other endeavors: “Even if it doesn’t get ratings, it’s still going to be great for my brand.”
Those benefits began flowing almost immediately. As early as July 2004, internal marketing plans for various Trump projects called for “exposure through casting on ‘The Apprentice,’” and by 2006, his New York hotel, Trump SoHo, was featured as the winning contestant’s project.
Product endorsements and speaking engagements rolled in as never before.
In the two years preceding the debut of “The Apprentice,” Mr. Trump’s side income was mostly confined to $500,000 for appearing in the Big N’ Tasty burger ad and a small amount of book royalties. But over the next two years, his tax records show, he collected $5.2 million from 11 different ad campaigns and speaking gigs, all propelled by his growing popularity as a reality-TV businessman.
Mr. Trump was not terribly discriminating in his choice of endorsements. He slapped his name on everything from steaks and vodka to a board game and cologne. For the benefit of “consumers interested in experiencing the Trump lifestyle at an affordable price,” as a news release put it, he signed a licensing deal with the Serta mattress company that eventually netted him more than $15 million. Another $15 million would pour in from Trump neckties, shirts and underwear by clothiers like Phillips-Van Heusen.
No endorsement was too small. Warner Music paid $100,000 to feature Mr. Trump in a collection of cellphone ringtones, with the Donald uttering phrases like, “You’re getting a phone call, and believe me, it better be important. I have no time for small talk, and neither do you.”
Unilever, which was looking to promote a new version of its All brand laundry detergent, concocted an entire multiplatform marketing campaign around Mr. Trump. In addition to $850,000 the company paid him directly, tax records reveal, he earned $250,000 more from a public-relations firm Unilever hired to help run an ad campaign coined “Softness fit for a Trump.”
Unilever staged a publicity stunt outside Trump Tower in Manhattan, where Mr. Trump hoisted a laundry basket with an ad for “All Cleans & Softens” stuck to the front. He had taken a break from the rigors of “The Apprentice” to wash donated clothes for charity, Unilever claimed.
As part of his agreement, Mr. Trump cold-called journalists to talk up All detergent, telling a Boston Globe reporter, “Unilever is a great company” and “This is a product my mother used.” He also recorded voice-overs for an online game that was part of an All sweepstakes, in which a tiny digital version of Mr. Trump did laundry and squawked one-liners like, “The Donald can do the work of 40 dry cleaners!”
The sweepstakes winner was Tracy Wright, a young mother from Brazil, Ind., who had bought her jug of detergent from a local Walmart. She got an all-expenses-paid trip to New York, where she had her picture taken with Mr. Trump.
“We met him the day after ‘The Apprentice’ season finale, so he was incredibly friendly,” she told her local newspaper. “He was in a great mood.”
Business Wisdom, at a Price
Around the world, the self-made-billionaire myth became a product to lure those in need of money.
With his penchant for using what he called “truthful hyperbole” to play on people’s desires, Mr. Trump had always skated close to the edge of fraud. Soon, he would be accused of crossing the line completely.
In his zeal to squeeze ever more dollars out of Mr. Burnett’s golden goose, Mr. Trump signed on to an array of questionable products and services, including some that claimed to sell insights into his business expertise. The first year of “The Apprentice” was barely over when Mr. Trump pocketed $300,000 to speak at an event in Dayton, Ohio, where attendees paid $2,995 to learn the secrets of instant wealth from a company that was later accused in a lawsuit of running a Ponzi scheme.
In his monologues, he made a virtue of his first round of casino failures, portraying himself as a victim whose grit and intelligence saved the day. People ate it up.
“His presence gives me reassurance,” Lillie Moss, who raided her retirement fund to buy an investment kit at the Dayton event, said of Mr. Trump.
The tax records show that another series of speaking engagements, sponsored by the Learning Annex, paid Mr. Trump $7.3 million for events with titles like “Real Estate Wealth Expo: One Weekend Can Make You a Millionaire.” A book he co-wrote with the Annex’s founder, “Think Big and Kick Ass: In Business and Life,” earned him royalties of $1.4 million.
Unmentioned in the mythologizing were the millions in bailout money from his father or the losses he was reporting to the I.R.S. Nor was there any sense of the gigantic payday — revealed only through an examination of the tax data — that Mr. Trump was enjoying in exchange for lending his imprimatur to an increasingly cynical array of business ventures.
As the years went on, and the success of “The Apprentice” made Mr. Trump a household name far beyond New York, the chasm between truth and hyperbole widened. It was one thing to bray about his late mother — a multimillionaire with a maid and a Rolls-Royce — using All laundry detergent. Now, he was flogging things that could hurt people economically.
In what would be his most lucrative side deal, he teamed up with a multilevel marketing company, ACN, whose clients were told they could make a living from home by selling video phones, satellite television and other services. Investigated in several countries, ACN has left a trail of complaints that people were suckered into spending far more than they earned trying to peddle the company’s products.
Regulators in France concluded that “only 1 percent of people recruited could claim a satisfactory income,” and that the rest lost money or, at most, made about $35 a month, according to court records. Montana officials came to a similar conclusion, finding that the average participant in that state paid ACN about $750 in various fees but got back only $53.
ACN, which has never admitted wrongdoing while settling legal actions by state regulators, claims its business model is misunderstood; on its website, it once posted a page helpfully titled “The Difference in ACN and a Pyramid Scheme.” A class-action lawsuit pending against Mr. Trump and his family asserts that the Trump brand became central to ACN’s business strategy, citing one plaintiff who signed up after she “watched clips of ACN appearing on ‘Celebrity Apprentice.’”
ACN sold DVDs of Mr. Trump promoting its products, and devoted part of its website to its “Trump partnership,” featuring photos of him appearing at ACN events and his glowing testimonial: “ACN has a reputation for success. Success that’s really synonymous with the Trump name and other successful names, and you can be part of it.”
By the time Mr. Trump featured ACN’s video phone on “The Apprentice” in 2011, the technology was close to obsolete, and yet he played it up, saying, “I think the ACN video phone is amazing.”
His tax returns reveal just how much the company was paying him for the happy talk: $8.8 million over 10 years, including $1 million in 2009 — the nadir of the Great Recession, when desperate people were drawn to promises of a fast payday. In fact, Mr. Trump actively capitalized on the economic anxiety.
In a separate deal he struck that same year, this one to promote the multilevel marketing of vitamins by a company that was rebranded the Trump Network, he gave speeches that persuaded some people to spend almost $500 for a starter kit and try to recruit friends and relatives. Mr. Trump said in a video that people “need a new dream.”
“The Trump Network wants to give millions of people renewed hope, and with an exciting plan to opt out of the recession,” he said.
Within a couple of years, the company behind the Trump Network, Ideal Health, was sold, and its owners declared bankruptcy. Still, it was long enough for Mr. Trump to make $2.6 million selling hope in a vitamin bottle, according to his tax records.
In 2016, he agreed to pay $25 million to settle litigation over Trump University, an unaccredited seminar that persuaded people to pay as much as $35,000 to learn the real estate trade. But that legal reckoning was the exception in a decade-long run by Mr. Trump and his company, described in the class-action suit, filed in 2018, as a “large and complex enterprise with a singular goal: to enrich themselves by systematically defrauding economically marginalized people looking to invest in their educations, start their own small businesses and pursue the American Dream.”
Low Risk, High Yield
Mr. Trump lent his name to buildings he didn’t own, collecting big fees as his investors lost millions.
In his sales pitches, Mr. Trump frequently boasted that he “owned buildings all over” Manhattan. Actually, although at one point “Trump” was emblazoned on at least 17 buildings, Mr. Trump owns all or a portion of only a half-dozen. Many of the others he had developed decades earlier and then sold, before his casino bankruptcies made credit harder to come by.
With the prospect of building suddenly less viable, Mr. Trump explored licensing his name to other developers’ projects. The idea gained traction after an obscure developer, Bayrock Group, started leasing office space on the 24th floor of Trump Tower, directly below Mr. Trump’s headquarters. At about $400,000 a year, and a total of $2.2 million by the time the lease ended, according to the tax records, it proved a good investment for Bayrock, which used its proximity to pitch project ideas to Mr. Trump.
Bayrock was a bit of a mystery. Its founder, Tevfik Arif, was a former Soviet-era official from Kazakhstan whose 2003 financial statement, showing $70 million in assets, had a caveat saying his own accountant could not vouch for it. Mr. Arif’s right hand was Felix Sater, a Russian émigré with ties to mobsters, who sometimes went by another name to obscure his criminal past.
Still, it was all good enough for Mr. Trump, who signed on to pursue an exciting concept: condo-hotels, in which buyers of units could rent them out when not using them. Even better, Bayrock mostly just wanted his name; the construction money would come from somewhere else.
Bayrock proposed to bring the Trump brand to hotels around the country and overseas, where Mr. Trump’s flamboyant taste for gold and glitz played well among wealthy foreigners with a caricatured notion of American success.
Years later, in a lawsuit deposition, Mr. Trump said that he discussed “numerous deals all over the world” with his new partners, and that “this was going to be Trump International Hotel and Tower Moscow, Kyiv, Istanbul, etc., Poland, Warsaw.”
At the same time, Mr. Trump asserted that because he was not actually the developer, he knew very little about what Bayrock was doing just two floors below his office. But internal Bayrock documents reviewed by The Times show that the company, right from the start, went looking for financing from Russia to pay for its Trump-branded hotels.
A draft plan from November 2003 titled “Russian fee agreement” called for an unnamed broker to provide $50 million for three Trump hotels in the United States and potentially “raise capital for all” of Bayrock’s Trump projects. A former Bayrock executive said the proposal never panned out, although the company later received $50 million from an Icelandic bank suspected of having Russian ties.
Ultimately, despite multiple attempts, the Trump-Bayrock partnership would find success only with the Trump SoHo condo-hotel in Manhattan. But it was a milestone in the evolution of Mr. Trump’s business model during the “Apprentice” era, showing that he could find easy profits from licensing his name not only to neckties and bedding but to entire buildings — and use the TV show to market them.
Unlike his Chicago tower, where he became embroiled in lawsuits over hundreds of millions of dollars in construction loans, Mr. Trump’s SoHo hotel was essentially risk-free for him. His tax records show that, between licensing and management fees, Trump companies involved in the project ultimately netted as much as $9 million, even though they did not build or finance it.
Awash in new licensing offers while riding the “Apprentice” wave, Mr. Trump in 2007 inaugurated the Trump Hotel Collection, with an emphasis on foreign projects. It was largely aspirational: A new website listed “future properties” in Toronto, Mexico, the Dominican Republic, Panama, Scotland and Dubai, among other locations.
But the fees were already pouring in. Mr. Trump’s profits from licensing deals, which in 2003 barely registered, climbed to $1.3 million two years later and then skyrocketed, hitting $29.7 million in 2010 before steadily declining, according to his tax records.
Because of how the licensing agreements were drafted, with sizable fees up front, Mr. Trump stood to gain even if a project failed. Of the 10 “future properties” initially listed on the hotel collection’s website, three never got off the ground, and five others either were not completed or later severed ties with Mr. Trump. Yet he still managed to collect a total of $46 million from them.
Questions have repeatedly been raised about Mr. Trump’s choice of projects, which often fell apart amid allegations and disputes.
In Rio de Janeiro, where his tax records show he deducted $14,000 for the cost of a background investigation when signing onto a hotel deal, Mr. Trump was later forced to pull out amid a bribery investigation into the developer. In Azerbaijan, where there is a history of corruption, developers with ties to a cabinet minister paid Mr. Trump $5 million to brand and manage a hotel that was never completed after a major backer dropped out of sight.
And buyers of units in a planned Trump condo-hotel in Mexico were burned after putting up some $32 million in deposits, only to see the project canceled with no refunds. In a lawsuit that was eventually settled, some of the buyers claimed they had been duped into believing Mr. Trump was an active participant in the project.
“In doing so,” the lawsuit said, “defendants induced buyers to rely on the ‘Trump brand’ and the Trump name as a legitimate, dependable, luxury real estate developer.”
In what became a recurring theme, Mr. Trump’s defense was that he had merely licensed his name, and therefore had no responsibility for the project’s collapse. As he explained in a deposition for another lawsuit, this one by investors in a failed Trump hotel in Fort Lauderdale, Fla., “the developer is really the one that is responsible.”
“We’re like a hotel company, Ritz-Carlton or Four Seasons or Waldorf Astoria,” Mr. Trump said. “We are a name.”
A Spending Spree
Flush with new cash, Mr. Trump bought luxurious golf courses that would fall deep into the red.
While Mr. Trump’s tax returns tell the story of how reality TV and its reflected glow made him rich, they also shed some light on an enduring question that has generated much head-scratching, if not dark speculation: Where did he get hundreds of millions of dollars to buy and prop up his golf resorts?
Mr. Trump had only two open golf courses and two more undergoing renovations at the time of his plunge into television, but golf — a pastime that he “spent an inordinate amount of time on,” his niece, Mary Trump, wrote in her recent family tell-all — always seemed destined to become his next financial sand trap.
“I have the best buildings in Manhattan. I have the best casinos in New Jersey. I build a great product,” Mr. Trump boasted to a reporter in 2002. “I actually have more fun building courses than I do playing.”
Beginning in 2006, and continuing over the next decade, he would accumulate 11 more golf courses, forming a new core of what he describes as his empire.
The amount of capital Mr. Trump has spent on his golf properties is staggering and has echoes of his earlier, ultimately disastrous, embrace of casinos. During a three-year period starting in 2014, he pumped $144.5 million into his Turnberry golf course in Scotland, his tax returns show, even as the property has continued booking losses year after year. He has put $213 million into his Doral resort in Florida, with similar results.
Meanwhile, Mr. Trump’s main source of income — “The Apprentice” and licensing deals — went into a steep decline starting in 2011, falling, along with the show’s ratings, from $51 million that year to $21 million by 2014, and eventually to less than $3 million in 2018.
Which is where those unsubstantiated theories of secret payments from Russia or the mob come in.
His tax records provide more mundane answers. They reveal that as he was pouring money into the golf resorts, he also pulled money out of other places in ways that suggested an immediate need. In 2012, he borrowed $100 million against his equity in Trump Tower in Manhattan, one of his more valuable properties. A year later, he withdrew $95.8 million from his share of a real estate partnership that owns buildings in New York and California. And in 2014, he sold $98 million in stocks and bonds.
These one-time maneuvers, coupled with the more than $427 million from “The Apprentice” and licensing deals, would probably have provided enough cash to cover his golf course investments. But they cannot be repeated, and in at least one case — the Trump Tower mortgage — they need to be paid back.
In addition, he has huge balances on loans, soon to come due, from Deutsche Bank, including $160 million on his Washington hotel in the Old Post Office building and $148 million on the Doral golf resort. Neither of those businesses is turning a profit.
In a series of tweets on Monday morning, a day after The Times published the first part of its investigation of his tax-return data, Mr. Trump sought to refute any negative impression of his wealth, insisting that he has “very little debt compared to the value of assets,” and suggesting that he might release statements “showing all properties, assets and debts.” It is unclear what sort of statements he was referring to; the public financial disclosures he must file as president already list his assets and debts.
As the president enters the final weeks of his re-election campaign trailing in virtually all the polls, he is a man politically and financially challenged.
Many of the old financial escape hatches have closed. After he announced his candidacy in 2015 with racist comments about Mexicans, NBC, which carried “The Apprentice,” cut ties with him and he sold his interest in the Miss Universe pageant, another reliable moneymaker. Hotel licensing deals have mostly dried up.
Last month, as he prepared for a Republican convention that would market him as America’s savior in this dark and disordered hour, Mr. Trump turned to two entertainment industry veterans with experience generating the kind of razzle-dazzle that had worked so well in the past.
Both had helped produce “The Apprentice.”
Rep. Kevin Brady (R-Texas) called on Monday for a probe into the sources of The New York Times story that detailed two decades worth of President Trump’s tax records and financial dealings.
Brady, the head Republican on the House Ways and Means Committee, released a statement on the Times report that was published Sunday, saying a “felony crime was committed” by giving Trump’s tax information to the newspaper.
"While many critics question the article’s accuracy, equally troubling is the prospect that a felony crime was committed by releasing the private tax return information of an individual - in this case the President’s,” he said.
“To ensure every American is protected against the illegal release of their tax returns for political reasons, I am calling for an investigation of the source and to prosecute if the law was broken,” he added.
The bombshell Times report detailed that Trump paid a total of $750 in federal income taxes in 2016 and 2017. The cited documents also revealed that Trump leveraged his losses to pay no federal income taxes in 10 of 15 years.
The report also said Trump is confronting significant losses and has several large loan deadlines approaching in the next few years, including a $100 million loan due in 2022.
The documents were obtained by sources who had legal access to it, the newspaper noted in its report. Prior to publishing, a lawyer for the Trump Organization asked the newspaper to see the documents but the publication declined in order to protect its sources.
Trump and the White House both countered the report, with the president giving several defenses, although none have addressed its core findings. The president first reacted to the report, calling it “fake news” during a press conference on Sunday.
He later tweeted Monday morning that the Times “illegally obtained” the information with “bad intent” and said he “was entitled, like everyone else, to depreciation & tax credits.”
The Times report was released two days ahead of the first presidential debate between Trump and Democratic nominee Joe Biden. Biden’s campaign leaped on the report releasing a campaign ad Monday criticizing the president for paying $750 in federal income taxes.
The president has declined to release his tax returns throughout his campaigns and presidency, breaking from tradition of previous modern presidents.
Trump has pointed to an Internal Revenue Service (IRS) audit as reason for not releasing the returns. Congressional Democratic lawmakers and state prosecutors have attempted to obtain them. Experts have said the IRS audit would not prevent Trump from releasing the documents.
Here’s where T’s audit of his tax returns takes place, and how he got that $73 Mil tax refund which is offered back as a ‘quickie refund,’ and then reviewed.
The details published about Donald Trump’s tax returns were a revelation to the public but not to a small group of attorneys who work for a little-known congressional panel. Trump has been in the middle of a dispute with the Internal Revenue Service over a 2010 claim of a $72.9 million tax refund, according to the New York Times, which obtained more than 20 years of the president’s tax data. The size of the refund claim brought it before the Joint Committee on Taxation. Whenever there is a proposed refund of more than $2 million for individuals and $5 million for corporations proposed, the committee staff reviews it before payment by the IRS. Part of the rationale for such reviews is to make sure tax laws are working the way Congress intended.
In Trump’s case, the IRS initially sent an audit of the refund to the joint committee in 2011 and an agreement was reached in 2014. But an expanding audit meant that the IRS resubmitted the refund documentation for review in 2016, where it has sat unresolved since then, the Times reported. Trump received what tax professionals refer to as a “quickie refund,” a check processed in 90 days on a tentative basis, pending an audit by the IRS, the Times reported. The committee staff reviewed between 470 and 370 proposed refunds per year from 2015 to 2018, according to a congressional aide.
The committee staff reviewed between 470 and 370 proposed refunds per year from 2015 to 2018, according to a congressional aide.
Most of the proposed refunds involved net operating loss carry-back provisions, in which a business uses losses in one year to offset profits in another, sometimes resulting in refunds of “hundreds of millions of dollars,” said Kenneth Kies, who was chief of staff for the panel from 1994 to 1998.
More Grift revealed today:
Last week, I went to Donald J Trump state park, a park few people know exists, because it’s not really a park. In fact, it’s two tracts of muddy, overgrown land between New York’s Putnam and Westchester counties that Trump purchased in 1998 for a total of [$2.75m](How a Failed Trump Golf Course Became a Dilapidated State Park | Time), hoping to build a golf course. Neighborhood officials halted the plan, citing environmental concerns, and the land was abandoned. In an alternate timeline, the story would just end here.
But we’re living in Trump’s universe. In 2006, the reality TV mogul donated the undeveloped land to New York state, claiming it was worth $100m – an amount that, if claimed as a qualified conservation contribution, could have saved him a fortune in income tax, potentially carried forward for years. (Confusingly, Trump’s 2016 campaign valued the land at [$26.1m](https://www.washingtonpost.com/politics/a-portrait-of-trump-the-donor-free-rounds-of-golf-but-no-personal-cash/2016/04/10/373b9b92-fb40-11e5-9140-e61d062438bb_story.html) in his public list of charitable contributions.)
my bold
