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House panel gets Trump tax returns

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Cyber Liberty:
...let the leaking begin!

Kamaji:
My guess is that the tax returns will show substantial loss carryforwards derived from his interests in the various real estate partnerships he was involved with - real estate investments tend to throw of net losses for tax purposes even if they're otherwise profitable on a cashflow basis, given the amount of depreciation that is allowed for tax purposes - and particularly with respect to the real estate partnerships that went belly up, and that this will be viewed - rightly or wrongly - as a sign of failure on Trump's part when that couldn't be further from the truth at all.

Harvesting paper losses to offset against real income from other sources for the purpose of reducing one's tax bill is one of the time-hallowed reasons for investing in real estate, and was the motivator behind a lot of the individual tax shelter legislation that was passed in the 60s and 70s, like the at-risk rules of IRC §465 and the passive activity loss rules of IRC §469 - which is kind of amusing given that real estate investment gets special kid-glove treatment under those provisions.

rustynail:
Does Trump have the Samson Option?

libertybele:

--- Quote from: Kamaji on December 01, 2022, 07:14:16 pm ---My guess is that the tax returns will show substantial loss carryforwards derived from his interests in the various real estate partnerships he was involved with - real estate investments tend to throw of net losses for tax purposes even if they're otherwise profitable on a cashflow basis, given the amount of depreciation that is allowed for tax purposes - and particularly with respect to the real estate partnerships that went belly up, and that this will be viewed - rightly or wrongly - as a sign of failure on Trump's part when that couldn't be further from the truth at all.

Harvesting paper losses to offset against real income from other sources for the purpose of reducing one's tax bill is one of the time-hallowed reasons for investing in real estate, and was the motivator behind a lot of the individual tax shelter legislation that was passed in the 60s and 70s, like the at-risk rules of IRC §465 and the passive activity loss rules of IRC §469 - which is kind of amusing given that real estate investment gets special kid-glove treatment under those provisions.

--- End quote ---

Nothing illegal. They definitely would not show Trump's failures but rather "trimming" losses and taxes which is a smart business move.

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