Trumps Taxes

KillerGopherFan

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Totally innocent mistake by an associate producer at Kushner Inc. who regrets the error! Also, since he works in the White House probably illegal.

Did he destroy 33 cell phones? howie thinks that’s completely plausible.
 


howeda7

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Great explanation. Thank you.
This explanation only flies if the company owns one property. Yes, in year 1, you might have a large amount of bonus depreciation and show a loss. But in years 2+ you will make more because the depreciation is lower. Someone with a yuge real estate empire would not be showing losses because they would have mature properties producing far more income than they would lose on the 1-2 new properties each year.

Any one year could be an exception to this of course. But if you're showing losses or no income year after year you're either a tax cheat or a bankrupt moron. Period.
 




KillerGopherFan

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LMAO! Personal taxes aren't what you think they are. Really stupid post by you. Understand the subject material next time.
It’s the statement from Trump’s attorney. If you have an issue, you have it with him. Or maybe it’s just your personal mental health issue.
 

TruthSeeker

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It’s the statement from Trump’s attorney. If you have an issue, you have it with him. Or maybe it’s just your personal mental health issue.
You idiot. That's obvious. You still posted it, and you don't understand the post. It's legal spin.

You got used. A useful idiot who is clearly too dumb to post here.
 

Section2

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I knew you didn't understand it. If your revenue is 1 billion and your expenses are 1.1 billion how much profit do you have?
Embarrassing. Like all his posts.
 

howeda7

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I knew you didn't understand it. If your revenue is 1 billion and your expenses are 1.1 billion how much profit do you have?
You have a %^^^y company.
 



justthefacts

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BREAKING NEWS: Attorney defends client! More on this unbelievable turn of events at 11!

85uYErN.jpg
 


Wally

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You have evidence right before you eyes, or maybe you’re afraid to read it, and you are in denial.

But NYTs...Trump bad and you’re all over it. Hack!

All i need are Trumps own words to know he is a POS......
 





cjbfbp

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Certainly. Let's say you decide you want to purchase a $100,000 investment property. You have $100K in cash, so you could buy it debt free, or you could put a certain percentage down and borrow the rest. Assume we plan to make $5K in operating income before depreciation in year 1. The investor that borrows and puts down 10% will make a higher percentage return on their investment (5k/10K = 50%) than the person that paid $100K in cash (5k/100K = 5%). You've made a higher return because you've leveraged your investment.

I have no idea what Trump's financial position is. But a good real estate investor should always be able to take advantage of the generous tax rules and never show a profit after depreciation on real estate. The public is financially illiterate and doesn't understand this, which is why Trump releasing his tax returns was never going to be the enlightenment that some thought it would. Although I believe he should have released his taxes back in 2016.

I agree with what you have written here, but leverage of course is a double edged sword. In good times with high returns, you are better off with leverage. In bad times with low or negative returns, you are worse off with leverage. Of course, real estate investments are by nature highly leveraged. As far as depreciation expense causing losses, the NYT article mentioned that Trump had significant losses even before considering depreciation expense.
 


Gopher_In_NYC

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I knew you didn't understand it. If your revenue is 1 billion and your expenses are 1.1 billion how much profit do you have?

You believe his BS. Wow. SMH - I have a bridge in Brooklyn I can sell you - very inexpensive

Duh, he's a Fing criminal - he shows a loss so he doesn't have to pay taxes. Do you get that? This is a person who lies like normal people breath and values money and his image as a mogul above everything else.

"Ultimately, Mr. Trump has been more successful playing a business mogul than being one in real life." - From the NYT article.

If your think his returns are accurate then he is is a total and complete failure as a businessman to lose money on that type of revenue. If I am correct then he is a fraud. Based on the numerous things he's lied about/downplayed - i.e. the virus, it is obvious that my supposition is likely the correct one.
 
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bga1

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This is over simplified but a Breitbart article explains how real estate can work in dumbed down language. Shame on the NYT for attempting to take advantage of the financial illiteracy of their readers and the people those readers will spread their tripe to:


The article’s most basic problem is that it assumes that the losses Trump reported on his taxes are actual economic losses. But that’s highly unlikely due to the nature of his business. As a real estate investor, Trump was not in a position of a store owner selling inventory below cost and incurring operating losses. Instead, he would have been reducing his reported income by the amount of his interest payments on loans and the depreciation of the property he owned.

This can be a powerful combination that can create what are, essentially, illusionary losses that reduce taxes but inflate an owner’s bank account. What’s more, the bigger the portfolio is of assets owned, the larger the write-offs will be for interest and depreciation.

Take the simplest example. A guy buys an apartment building worth $10 million. For simplicity’s sake, let’s say he bought it with cash. Each and every year for the next 27.5 years he will get to write-down his income by around $370,000. If his tenants pay him $300,000 in rent after basic expenses, he’ll declare a loss of $70,000 on his taxes. His net worth has declined on paper, but he has $300,000 more in cash every year. And if the rent payments ever exceed the depreciation amount, he’ll get to use those old accumulated losses to offset the new income.

In the real world, of course, things are more complicated than our simple example. Buildings are bought with loans, which require interest payments that count as business expenses and reduce both actual income and taxable income. And there are other operating expenses associated with upkeep and maintenance.

So imagine our guy took out an $8 million mortgage at five percent, paying $2 million cash. Now he’s got to pay $400,000 in mortgage payments. He wants to make at least that much so he charges tenants an aggregate of $425,000, which after upkeep comes out to $410,000 of net income. (Remember, if the bank didn’t think he could make more in rent than the mortgage payment, it probably wouldn’t have lent him the money.) The interest payment on the loan–let’s call it $390,000–is deductible from his income, leaving him with $20,000 in net income. He gets to keep that and pay no taxes on it, however, because he still gets to apply the $370,000 depreciation charge. He tells the IRS he lost $350,000.
 

cjbfbp

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This explanation only flies if the company owns one property. Yes, in year 1, you might have a large amount of bonus depreciation and show a loss. But in years 2+ you will make more because the depreciation is lower. Someone with a yuge real estate empire would not be showing losses because they would have mature properties producing far more income than they would lose on the 1-2 new properties each year.

Any one year could be an exception to this of course. But if you're showing losses or no income year after year you're either a tax cheat or a bankrupt moron. Period.

Just a technical point: Section 179 and bonus depreciation normally don't apply to real estate. Real estate still has to be depreciated straight line over pretty long lives.
 


howeda7

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Just a technical point: Section 179 and bonus depreciation normally don't apply to real estate. Real estate still has to be depreciated straight line over pretty long lives.
Not the primary purchase, but leasehold improvements and retail improvements qualify. And this was increased from 50% to 100% in the Trump tax cuts. Coincidence I'm sure.

And without that, the idea that he's only showing a showing a loss due to generous depreciation laws is moot.
 

bga1

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You believe his BS. Wow. SMH - I have a bridge in Brooklyn I can sell you - very inexpensive

Duh, he's a Fing criminal - he shows a loss so he doesn't have to pay taxes.(Ask your HR Block Rep to explain it), Do you get that? This is a person who lies like normal people breath and values money and his image as a mogul above everything else.

"Ultimately, Mr. Trump has been more successful playing a business mogul than being one in real life." - From the NYT article.

If your think his returns are accurate then he is is a total and complete failure as a businessman. If I am correct then he is a fraud. Based on the numerous things he's lied about/downplayed - i.e. the virus, it is obvious that my supposition is the correct one.
So is your accusation that .....
A- You think the returns are inaccurate the IRS despite annual audits of him cannot figure it out?

Or

B- Do you think he is a stupid dotard who loses money every year?

Or

C- Due you think he is smart and he is raking in tons of "revenue" every year? :) :)

Or

D- Do you just hate Trump and have a severe case of TDS and have no clue about his finances?

I am going with D here.
 

TruthSeeker

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So is your accusation that .....
A- You think the returns are inaccurate the IRS despite annual audits of him cannot figure it out?

Or

B- Do you think he is a stupid dotard who loses money every year?

Or

C- Due you think he is smart and he is raking in tons of "revenue" every year? :) :)

Or

D- Do you just hate Trump and have a severe case of TDS and have no clue about his finances?

I am going with D here.
The correct answer is Trump is a tax cheat at the state and Federal level. Donny Boy needs dummies like you to keep the gravy coming and to keep the chains at bay for another few years.
 





stocker08

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It's a BS argument. Trump's qualification was "he's such a successful businessman." "He'll run the country like a business." But he's not and things like this prove it. If his taxes showed he made 250/year million and paid 50-75 million in taxes, no one would be outraged.

I'm sure that he thought he could for bankruptcy again. It's going to be the most tremendous bankruptcy ever. Believe me.
 






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