IRS Investigation Reveals Potential $100 Million Tax Liability for Trump

Former President Donald Trump may owe over $100 million in taxes due to an IRS investigation spanning several years. The inquiry revolves around allegations of significant losses on his Chicago skyscraper, according to reports by The New York Times and ProPublica.

Reports reveal that Trump declared substantial financial losses twice. The first instance was on his 2008 tax return, where he claimed the building, burdened with debt at the time, had no value. The second declaration came after 2010, following the transfer of ownership into a new partnership controlled by Trump.

The 2008 claim led to Trump reporting losses of up to $651 million for that year. There was no challenge from the IRS, according to reports. Trump's lawyers then made additional claims of losses in 2010 by transferring the Chicago tower to a new partnership called "DJT Holdings LLC," as reported by The Times and ProPublica.

Following this, Trump's other businesses, such as golf courses, were also transferred to the same partnership. His lawyers used this to claim more tax-reducing losses from the Chicago tower. This action prompted an IRS investigation. The total losses amounted to $168 million over the next decade, the report revealed.

The IRS is seeking a revision that could lead to a tax bill of over $100 million for the outlets.

The only time the IRS audit into Trump's Chicago tower loss claims was mentioned publicly was in a December 2022 congressional report. The report referenced the section of tax law involved in the case, confirming that the audit is still ongoing.

My father's past tax issue resurfaced when he ran for office, but we believe we settled it years ago. Eric Trump, the executive vice president of the Trump Organization, stated that our position is backed by opinion letters from tax experts, including the former general counsel of the IRS, in an interview with The Times and ProPublica.

Editor's P/S:

The IRS investigation into former President Trump's tax practices has brought to light significant allegations and potential financial repercussions. The reported losses on his Chicago skyscraper have raised questions about the veracity of his claims and the thoroughness of previous IRS audits. The substantial tax bill that Trump may face if the IRS revises his returns highlights the importance of accurate tax reporting and the consequences of potential misrepresentation.

The ongoing nature of the IRS audit indicates the complexity and severity of the allegations. The potential for a tax bill exceeding $100 million underscores the magnitude of the potential tax liability. Additionally, the mention of the audit in a congressional report raises concerns about the transparency and accountability surrounding Trump's tax practices. It remains to be seen whether the IRS will ultimately determine that Trump owes additional taxes, but the investigation serves as a reminder of the scrutiny that public figures face in matters of taxation.