Former President Donald Trump might face a hefty bill from the IRS, reportedly surpassing $100 million, following a government audit that suggests he may have taken advantage of tax losses associated with a Chicago skyscraper.
This revelation, brought forth by a joint report from The New York Times and ProPublica, sheds light on Trump’s financial dealings, potentially reshaping the narrative around his business endeavors as he eyes a potential return to the White House in the next election cycle.
Trump, known for his roles as a real estate magnate and television personality, has remarkably withheld his tax returns, bucking the tradition upheld by previous presidential contenders.
While some details about his tax filings have emerged through various channels, including past reporting by The New York Times and disclosures from Democrats on the House Ways and Means Committee, a comprehensive view of his finances remains elusive.
IRS Audit Could Cost Trump $100 Million
Responding to the allegations, a statement attributed to Trump’s son, Eric, asserted that the IRS matter had been resolved years ago, only resurfacing when his father reentered the political arena. Despite the confidence expressed in their position, the tax records referenced in the report suggest that Trump claimed losses on the Trump International Hotel and Tower in Chicago on two separate occasions.
According to the report, Trump initially reported losses totaling $658 million in his 2008 filings, citing underperformance in condominium sales and retail space occupancy amid a severe economic downturn.
However, in a move that raised eyebrows, Trump purportedly transferred ownership of the property to another entity under his control in 2010, allowing him to claim an additional $168 million in losses over the subsequent decade.
While the status of the IRS inquiry has remained unclear since December 2022, the report speculates that Trump could potentially face a hefty bill exceeding $100 million, including penalties, should he lose the audit battle.
Meanwhile, Trump is embroiled in legal battles elsewhere. He remarkably appealed a New York judge’s ruling that found him, his company, and top executives culpable of inflating his wealth on financial statements and allegedly deceiving lenders and insurers.
In a parallel narrative, Democratic President Joe Biden has consistently criticized Trump’s financial practices, attributing much of his wealth to inheritance rather than entrepreneurial prowess. Biden’s administration has moved to bolster IRS funding, aiming to ramp up audits on the ultra-wealthy and enhance tax code compliance, a move contested by the Trump camp.
As the political landscape continues to evolve, Trump remains a central figure, overcoming legal challenges while advocating for the preservation of tax cuts enacted during his presidency, a cornerstone of his economic platform.
