Former President Donald Trump could owe the IRS more than $100 million after claiming dubious tax breaks on his skyscraper in Chicago, a bombshell New York Times report revealed Saturday.
The Chicago Tower — Trump’s most recent major construction project and completed in 2009 — has been a huge money loser since building began.
But the IRS is accusing Trump of writing off his losses twice — effectively double dipping on the tax benefits gained from the tower’s financial losses.
The Times reported that Trump’s tax return in 2008 claimed the building was “worthless” because the debt was too great to ever turn a profit. He reported losses of up to $651 million, according to the Times' investigation which it did in partnership with ProPublica.
In 2010, the report states, Trump moved the company that owned the tower into a new partnership.
ALSO READ: ‘Lord of the Flies’: Inside MTG’s effort to oust Speaker Mike Johnson
“Because he controlled both companies, it was like moving coins from one pocket to another,” according to the Times.
“Then he used the shift as justification to declare $168 million in additional losses over the next decade.”
The Times reported the move has been subject to a years-long, but until now unknown, investigation by the IRS that is still ongoing.
In a statement given to the Times, Trump’s son Eric, who is the executive vice president of the Trump Organization, said: “This matter was settled years ago, only to be brought back to life once my father ran for office. We are confident in our position, which is supported by opinion letters from various tax experts, including the former general counsel of the IRS.”
Recommended Links:
- Loans to his kids and huge business losses: Tax experts raise red flags after review of Trump tax returns
- Extending Trump tax cuts would add $4.6 trillion to deficit: CBO
- 'Bring a case': Trump's biographer says ex-president's taxes warrant a new criminal charge
- 'Bombshell' report raises questions about new possible Trump tax evasion: experts