The Trumps’ Taxes: New York Regulators Follow the Money
by: The Knowledge GroupOctober 09, 2018
Regulators are examining tax histories of President Trump and family.
This follows a New York Times report that Donald Trump’s fortune greatly increased through the undervaluation of real estate transfers from Donald’s father, Fred C. Trump.
Rent Control Workaround
The Trump family created a company that marked up goods and services bought by Fred Trump, then transferred the amount of the markups to Donald Trump and siblings, without reporting the transfers as taxable gifts, reported the Times. The New York State Department of Taxation and Finance is examining the transfers.
All County Building Supply & Maintenance is the name of a business set up in 1992. Its purpose was to purchase items for Fred Trump’s properties. Yet by simply marking up costs for already-purchased goods and services, the business reportedly operated to produce millions of dollars for the Trump family.
The Division of Housing and Community Renewal is examining rent increases at Fred Trump’s rent-regulated apartments, obtained with the reportedly padded invoices.
Keys to the Palace
The Times also claims that Fred sold his $15.5 million share of Trump Palace to Donald for $10,000—making a $15.49 million taxable, unreported gift.
The report found that the Trump parents transferred more than $1 billion overall to their children. The 55% tax rate then meant the amount was actually subject to $550 million in taxes, but the Trumps paid less than a tenth of that.
Trump lawyer Charles Harder rejects the paper’s claims of potential tax fraud, calling them defamatory.
No criminal charges can come of the claims, given the statute of limitations. Civil penalties may still apply. New York City officials said interest and penalties of up to 25% could be added to overdue taxes.
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