As we all know Donald Trump has refused to release his tax returns. New York times has revealed that Trump could have legally avoided paying his taxes as a result of a loss he experienced of about a billion dollars over two decades ago.
A fragmentary sample of Trump’s tax returns were leaked to the New York Times from an anonymous source and Trump’s accountant confirmed their authenticity. The forms reveal that in 1995 Trump claimed a business loss of about $916 million. This could have resulted from the losses experienced by Trump in previous years which include money-losing casinos in Atlantic City and the Trump Shuttle airline.
At around that time, the tax code allowed such losses to be “carried forward” up to 15 years, offsetting income and reducing or even eliminating tax liability and carried backward on income up to 3 years prior. The allowance has since been changed to carry forward 20 years and carry back 2 years. The code is particularly flexible when it comes to real estate professionals like Trump.
However, as a result of generous allowances granted to real estate professionals, Donald Trump would have been allowed to use his casino losses to counterbalance income from unrelated works. This included the millions Trump earned as the star of the television show “The Apprentice” and also it included licensing his name as the maker of Trump neckties.