We all suspect that Donald Trump is a pathological lying narcissist, so should we be the least bit surprised that he may have committed tax evasion for years? A lot of the filthy rich (maybe) push the limits of tax deductions, and the IRS has to make the call whether they’ve crossed the line into tax evasion. So the NYT has dug into some of Trumps tax deductions and here’s some of what they found.
If Mr. Trump were to sell a property, the profits would be taxed as capital gains at far lower rates (23.8 percent) than those imposed on ordinary income (39.6 percent). But real estate owners often don’t even pay capital gains taxes. They can take advantage of a provision known as Section 1031 to swap a piece of real estate that they are ready to part with for one that they would like to add to their portfolio — all tax free. There is no limit on how many swaps they can make, deferring capital gains taxes indefinitely.
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Mr. Trump’s quest for loopholes ranges far. In 2005, he got a $39.1 million tax deduction for donating a conservation easement on a New Jersey golf course, meaning that any further development on the property is restricted. On top of that, he installed goats on two of his New Jersey golf courses as part of a plan to get them designated as agricultural properties, thereby vastly lowering his property taxes.
Meanwhile, according to Mr. Trump’s campaign, from 2010 to 2014, he “donated” more than $102 million to charity — without giving away even $1 of his own money. More conservation easements constituted the biggest source of deductions, but the “gifts” included items like free rounds of golf for charity events. Many of these “charitable contributions,” of course, gave rise to more tax deductions.
Putting goats on a golf course makes it an agricultural property?! Will the public pressure politicians to demand an IRS investigation of his taxes? Is there anyone out there that won’t see this as tax evasion? And this is probably just the tip of the iceberg for the bull shit tax deductions he’s gotten away with and the public won’t tolerate.
Obama tried to close some of these loopholes real estate developers get, but do you want to guess how far it got in a GOP controlled congress? There’s a real possibility that Trump’s taxes could lead to tax loopholes becoming a really big issue in this campaign.
So don’t count on ever seeing Trump’s tax returns because they would certainly lead to calls for investigations by the IRS or congressional committees. Does Trump think that the risk of going to jail is worth fighting for every vote for the presidency? No way! Trump’s taxes will be the gift that keeps on giving in this election year.
Update: Some great comments. The legal possibilities of a Trump indictment for tax evasion are indeed open for discussion, but we certainly shouldn’t ignore the political ramifications of a constant chorus of a “possible” indictment until he releases his tax returns. I think we need only ask Secretary Clinton if the absurd accusations of a nearly impossible indictment over emails has taken a political toll, or Harry Reid if speculating about what’s in ones tax returns can apply heavy political pressure. I will continue to maintain that Trump could be indicted for tax evasion until he releases his returns. :)