So clearly there is something in there he doesn't want us to know. What do you think it is? I think it's that he's not as rich as he boasts. (And btw, Hillary has released tax returns every year since 1977.) Personally, I don't care if he's worth $1 billion or $10 billion. But it's something.
I just read an article about this, just got home from the post office food bank thing and I'm tired and hungry so I'm not going to find it but there was just an article about this. Long story short, Trumps worth isn't what he states but also he pays a very very low tax rate.
My take is that he pays $0 or very low taxes. Real estate investing has a lot of tax benefits, like depreciation. His travel can be written off if he has property at his destinations. He's basically hinted at this, especially recently. "I try and pay as little tax as possible, because I hate what they do with my tax money. I hate the way they spend our money." Like Hiliar, Nixon released his tax returns.
If these are the two choices we're stuck with then both need to release some shirt. Clinton needs to release her kiss ass speeches to wall street and Trump needs to release his tax returns.
There is nothing wrong with paying as little tax as you can if you follow the rules and have the correct documenation. Tax avoidance(otherwise known as planning) is fine. Tax evasion is not. Idk what trumps taxes show, but as you and i eluded to, he could be racking up losses. Then when he sells the property, he has a massive gain and pays a bunch of taxes on that (the basis would be minimal, especially if held long ago and heavily depreciated). Not willing to judge until i see them. It is interesting that he doesnt want to. Personally, i would want to wait until.an irs audit was over too though. If they adjust a bunch, id want to wait until after adjustments were made. Its still kind of a cop out though. He could release past returns that arent currently under audit.
The tax returns don't tell the whole story. In business, you keep 3 sets of books. One you show to investors: "we're making piles of money." One you show the IRS: "we lost money." One you use to manage your cash flow so the payroll gets paid on time. Much of Trump's net worth and income might be held in multiple LLCs and corporations. Hiliar can effectively skim funds from her foundation to pay for extravagant trips worldwide to "raise funds." Trump can likewise throw massive parties in the name of PR, recruiting tenants, etc., at the expense of businesses he controls.
Donald Trump Named in Latest Panama Papers Leak, Linked to 32 Offshore Companies http://www.globalresearch.ca/donald...-leak-linked-to-32-offshore-companies/5524856
If I were being audited, I would not want thousands of Woodward/Bernstein wannabes digging through the records looking for dirt. If he lost $1m on a deal ten years ago and made $1m this year, he can wash the gain with the loss and pay $0. Past years can and do affect current one.
Youre right, some of his stuff might be claimed in c corporations. Which wouldnt show up on his personal returns. A lot of times property is held on form 1065s though, which would pass through to his personal return.
No scandal here. There are legit reasons to deal with or as offshore companies. Like the hotel in Panama your article mentions.
No duh? Which is why ive mentioned net operating losses multiple times. Which is easily identifiable if you look at the tax return. If he lost it ten years ago, he could theoretically claim it in ten years, but thats unlikely. Because it probably would be used before them. Elect to Carryback 2 yrs, or carryforward up to 20 yrs.
I think he'd be better off getting it out in the open ASAP. Closer to the election means less time to explain it.
Not at all. Tax rules are not GAAP rules. GE, for example, is famous for showing profit on its books to the stock market, yet $0 or losses on the tax returns.
Seriously, I agree with the scrutiny you're putting Hillary under, but not doing it with Trump makes no sense. Why are some of you so quick to explain away Trump and his financials when you know nothing because he hasn't released a thing? Demand more.
Youre right that there is a difference between gaap rules and tax basis rules. But most in the finance world want to see tax returns. And if youre using a second set of books with gaap like recording to explain things like differences in depreciation, ok. But too many times businesses fraudulently adjust things to show massive money they make, then adjust back out for tax returns through illegal journal entries. Which is fraud.
I don't care about Hiliar's tax returns. Not unless they're the subject of a criminal investigation. Same for Trump's.
A 10-Q is a different form than the 1120 or other corporate income tax forms. Fraud is fraud. Net income on the tax return is minus deductions. There aren't deductions on the P&L, other than depreciation. And neither are an indication of cash flow. A company can be generating $1 in profit and spending $2 in capital investment. Cash flow -$1.
I look at these things all day denny, i know everything youre talking about. I agree its fine if they have gaap and tax basis books. But most in the finance world are capable of knowing which deductions on tax returns do not affect cash flow. Which is why whenever a small business requests a loan, the bank immediately wants the tax returns. There are many businesses that commit fraud this way. By having two sets of books. One sent to the government. The other sent to the bank.
I don't suggest fraud is at play here. When you do your tax return, your objective is to reduce your net income so you reduce the taxes you owe. When you do your public filings or show your books to investors, your objective is to show maximum net income. Neither of these are indicative of whether the company needs to borrow money or sell equity to remain afloat. With GAAP, your statements show income distributed evenly over the time of a contract, for example. But you may have received all the money up front or at the end.
