Former President Donald Trump may owe more than $100 million in taxes following an Internal Revenue Service investigation into allegations of huge losses at his Chicago skyscraper, the New York reported Saturday Times and ProPublica.
News outlets reported that Trump twice claimed massive financial losses — first in his 2008 tax return, when he said the building, then mired in debt, was “worthless,” and again after 2010, when he had also transferred his ownership into a new partnership. controlled by Trump.
The 2008 claim led Trump to report losses of up to $651 million for the year, and there was no indication that it sparked a challenge with the IRS, news outlets reported. Then Trump’s lawyers authorized new claims for losses in 2010 by moving the Chicago tower into another partnership, “DJT Holdings LLC,” the Times and ProPublica reported.
In the years that followed, other Trump businesses, including golf courses, would move into the same partnership — which his lawyers used as a basis to claim more tax losses from the Chicago tower. This decision triggered the IRS investigation. These losses amounted to $168 million over the next decade, according to the report.
Media reports have calculated that the IRS-requested review could result in a tax bill of more than $100 million.
The only public mention of the IRS audit of Trump’s claims for the loss of the Chicago tower came in a December 2022 congressional report that, according to the Times and ProPublica, made an unexplained reference to the section of the tax law at issue in the case. This mention, media reported, confirmed that the audit was still ongoing.
“This case was settled years ago, only to come 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,” said Trump’s son, Eric Trump, executive vice president of the Trump Organization, to the Times and to ProPublica in a statement. .
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