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Monday, October 3, 2016

Trump's Taxes

Folks, we wish we had The Donald's tax problems.  Or do we?  Wonder what it's like to lose almost a BILLION DOLLARS in one year.  But then, if you can write it off for the next 15 years or more, maybe it breaks even.  Anyway, dollar amounts like this, and the tax code, makes my head hurt. So let's let a smart guy explain it:

According to wiki on the Trump Organization (TO), this business entity is privately held, is a holding company for Trump's many assets  and is 100% owned by Donald Trump.
That being the case the TO can be organized in a couple of ways:
1.  As a sole proprietorship.  In that case the income and liabilities of TO are an extension of his household and solely his personal tax responsibilities.
2.  As an S-corporation.  This would provide him with some liability protection in operations but would treat all revenues and losses as his and require him to accept these as personal income and losses to be settled at the end of each tax year.
In the context of the disintegration of the casino industry in Atlantic City, New Jersey in the mid-90s,  it is not difficult to understand how he could have had a loss of $913 million in one year,
US tax law allows a business owner to carry over "unused" losses from one tax year to the next for 18 years.  The remaining "unused" losses are applied in the following years' tax returns until exhausted or time runs out.
This is not rocket science.  What was he supposed to do, eat the loss?
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Well, that's clear.  And at least it wasn't on a mail server in Hillary's basement.
Personally I don't two hoots in hell about Trump, Hillary, or that doofus Libertarian but it just strikes me as suspicious that copies of Trump's tax returns mysteriously appear in a plain brown wrapper at the New York Times.  Talk about Hmmmmmm.  One wonders if the Title Mart tricksters can write off THEIR losses.  Can you deduct jail time as an operational loss for tax purposes?

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