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New York Times Report Claims, Donald Trump’s Businesses Lost More Than $1 Billion During Early 90’s

House Democrats are trying to get their hands on Trump's tax returns from 2013 to 2018 as part of their investigation into the president's foreign business deals.

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Developer Donald Trump poses for photos outside the New York Stock Exchange after the listing of his stock in New York, June 7, 1995. VOA

Between 1985 and 1994, Donald Trump’s businesses lost more than $1 billion, allowing the future president to avoid paying federal taxes for eight of those 10 years, The New York Times reported Tuesday.

Trump portrays himself as a successful self-made entrepreneur and master dealmaker. However, he lost more money year after year than any other U.S. taxpayer, according to the Times, which did not use the actual returns but instead used information provided by someone who has access to the returns.

The bulk of Trump’s losses during that period came from his core businesses, including hotels, casinos and retail space inside apartment buildings.

FILE - Donald Trump ascends the stairs with his fist raised from the genie's lamp after opening the Trump Taj Mahal Casino Resort in Atlantic City, N.J., April 5, 1990. Behind Trump is the 42-story hotel.
Donald Trump ascends the stairs with his fist raised from the genie’s lamp after opening the Trump Taj Mahal Casino Resort in Atlantic City, N.J., April 5, 1990. Behind Trump is the 42-story hotel. VOA

They also include failed investments in an airline, a professional football team and unfinished plans for real estate developments.

According to the Times, Trump was able to maintain a life of luxury all those years because most of his money came from banks and bondholders who invested in the Trump empire. Trump also relied on his father’s wealth, according to the report.

But it appears Trump did not break any federal laws because the U.S. tax code allows people to deduct substantial business losses from their income taxes.

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They also include failed investments in an airline, a professional football team and unfinished plans for real estate developments. Pixabay

The White House has yet to respond to the Times story. But one of the president’s lawyers, Charles Harder, told the newspaper that the tax information it used was “demonstrably false.”

“IRS [Internal Revenue Service] transcripts, particularly before the days of electronic filing, are notoriously inaccurate … would not be able to provide a reasonable picture of any taxpayer’s return,” he told the Times.

Also Read: “Voluntary Commitments” To The Six-Nation Nuclear Deal: Iran

House Democrats are trying to get their hands on Trump’s tax returns from 2013 to 2018 as part of their investigation into the president’s foreign business deals.

Treasury Secretary Steven Mnuchin has so far declined, saying the request has no “legitimate legislative purpose.” (VOA)

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How to Extend Your Business Abroad

Starting a business or expanding an existing one is now easier than ever, considering the multiple options their owners have

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Starting a Business or expanding an existing one is now easier than ever. Pixabay

Starting a business or expanding an existing one is now easier than ever, considering the multiple options their owners have in terms of structures they can employ and even countries they can choose from. While the creation of a new company is usually simpler, the expansion of a business abroad will imply more financial resources directed to finding suitable premises, offices, employment and even production.

When it comes to the structures to be used for expanding a business abroad, the branch office and the subsidiary are the most employed. The creation of a subsidiary in Malta, for example, implies registering a local company which benefits from the same advantages as domestic businesses.

Let’s see what the expansion of a business through these two options implies.

The subsidiary company as an expansion option of a business

The subsidiary will usually be used by foreign companies seeking to develop other activities in the country it will move to. Among the advantages of this structure, we can mention the possibility of choosing the structure under which the business will operate which can lead to an easier incorporation procedure. Referring to the example above, starting a company in Malta under the form of a subsidiary can help investors operate under a limited liability company which is a popular business structure in countries all over the world.

There are also various tax advantages when operating a foreign business under a subsidiary company abroad. Among these, being subject to the same corporate tax, which in certain countries is lower than in the parent company’s home state, can represent a huge benefit when expanding it.

Setting up a branch office in order to expand a company

Compared to the subsidiary, the branch office offers the parent company more control over its activities. This is because the branch office will operate as a satellite of the foreign company, but will also be restricted to completing the same activities of the parent business.

The advantages of the branch office usually refer to more relaxed registration and licensing requirements and cheaper incorporation costs.

Expanding a company in a foreign country is a solution often employed by business owners seeking to diversify their activities and expanding their operations to clients abroad. The advantages of such a decision are often related to increased revenues and also to capitalizing on markets which do not offer the foreign company’s products or services.