The newspapers are frenetic saying that Trump could have paid no taxes for 15 years!!! That’s huuuuge!!!, counting on their readers to not understand what a tax loss carryforward is.
So who would have had copies of the first page of his NY, NJ and CT tax returns to be able to leak them to the press? How about Marla Maples Trump? (And her attorney). She was married to Trump from 1993 to 1999. No one state agency would have copies of all three returns.
So what was going on in Trump’s financial life in 1995?
One things was he bought the almost derelict 40 Wall Street 71 story skyscraper. He planned to convert the upper half to residences, but it turned out to be too expensive.
But Vanity Fair has lots of details about his divorce issues with Ivana and his tumultuous financial problems with his casino properties. Could he claim a huge loss on his casinos and then declare bankruptcy and have the debt wiped out, essentially giving him a $915 million loss carry forward that cost him nothing?
Normally, if a bank cancels some or all of a debt you owe (an upside down mortgage would be a familiar example). If you owed $200,000 and the foreclosed house sold for only $150,000, you get a 1099 form telling you that you owe taxes on $50k of phantom income – surprise! [changes were made after the 2008 collapse]
So from my brief research, when a debt is discharged by Chapter 11 bankruptcy, that is considered “income”, but removed back out of taxable income. Because undoubtedly Trump owned the properties via corporations, things get even murkier.
Ye of little faith who didn’t believe Trump might quit the campaign after he had the nomination – Happy October Surprise! 🎉
His name is locked in place for the election in 5 weeks. If Donald Trump wins, but there is no candidate left, what do the Electors do? There is no precedent. Will Jeb Bush, Paul Ryan and Ted Cruz appear out of the shadows to fight it out?
It’s great when a plan comes together. With Democrats having 44 Senate seats and 24 Republicans up for election, President Clinton having a 60 vote Majority is possible.