In order to save taxes, former US President Trump is said to have claimed the loss from a construction project twice for tax purposes. The New York Times reports a possible additional payment of $100 million.
According to a media report, former US President Donald Trump may face an additional tax payment of 100 million dollars (93 million euros). As the US newspaper New York Times reported in collaboration with the investigative platform ProPublica, he is said to have claimed a loss on a construction project in Chicago twice in order to save taxes.
The two media companies are referring to an investigation by the US federal tax authority, the Internal Revenue Service (IRS). The property is a 92-story glass skyscraper on the Chicago River, according to the New York Times, Trump’s tallest and last major construction project to date. Among other things, condominiums should be built there.
Losses in the millions
However, due to a combination of cost overruns and the severe recession in 2009 as a result of the financial crisis, the then real estate entrepreneur and current politician incurred high losses. According to the newspaper report, Trump wrote off the same losses twice.
The report said Trump initially reported $658 million in losses on his 2008 tax returns. He reasoned that the property met the IRS definition of “worthless” because of disappointing condo sales and underutilized retail space amid a deep U.S. recession.
In 2010, Trump transferred ownership of the property to another holding company that he also controlled. He was said to have done this to save taxes by reporting an additional $168 million in losses on the same property over the next ten years.
Trump’s son expresses confidence
His son Eric, vice president of the Trump Organization, told the newspaper in a statement that the matter was closed years ago. “We are confident in our stance,” he said. An IRS spokesman said the agency is prohibited by law from commenting on private taxpayer matters.
Trump ruled the USA from 2017 to 2021 and now wants to run for re-election after being voted out. The presidential election in November will come down to a neck-and-neck race between him and the Democratic incumbent Joe Biden.