Donald Trump may owe IRS over $100m after double-dipping on tax claims

During a political event in Richmond, Virginia, on March 2, 2024, Donald Trump, the ex-President and current presidential hopeful, is seen addressing the crowd. — Reuters

According to a bombshell report from The New York Times (NYT) released this Saturday, it appears that Donald Trump, the ex-President of the United States, is potentially on the hook for over $100 million to the Internal Revenue Service (IRS) for dubious tax deductions tied to his Chicago high-rise.

The Trump Tower in Chicago, completed in 2009 and known as Trump’s last significant development venture, has struggled financially since its inception.

The crux of the allegations by the IRS, unearthed in the NYT’s investigative piece, is that Trump may have taken advantage of his property’s economic downturn by claiming tax deductions for the same losses more than once.

The NYT’s examination, which was conducted jointly with ProPublica, highlighted that in 2008 Trump filed taxes for the property claiming it had become “worthless” due to insurmountable debt, thus making any profit elusive.

As per their findings, Trump declared up to $651 million in losses on his taxes.

In a strategic move in 2010, Trump restructured the ownership of the tower by creating a new partnership for the company that owned it.

The NYT noted that since Trump was at the helm of both entities, this transaction was akin to transferring money between his own pockets.

He then used this restructuring to claim $168 million in additional losses over the succeeding ten years.

This matter has triggered a detailed and ongoing investigation by the IRS, with the full scope and duration of the probe remaining undisclosed.

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