This morning most Americans are waking up to the New York Times article reporting that President Trump has paid $750 in federal income taxes for years 2016 and 2017. Shortly after midnight Trump tweeted “FAKE NEWS!” on his Twitter feed in response to the NYT report. Based on the report of 18 years of tax records, he successfully paid no federal income taxes in 11 of those years, and overall paid over $22 million in taxes. Trump apparently used the same, though perhaps more sophisticated, tax deductions most business people use to reduce their federal income tax bill.
The report shows that Trump paid approximately $95 million in federal taxes over the 18 years and received almost $73 million via a tax refund in 2010 due to his Atlantic City casino operations showing heavy losses. He has been battling the IRS on that refund ever since. This is the audit that Trump may refer to when he states he doesn’t want to release his personal taxes until they settle the case. The IRS is challenging the legitimacy of the almost $73 million refund, even though they initially granted him the refund.
Trump has written off an extraordinary amount of legal deductions because he owns his own business. Most of the deductions are deductions every business owner legally taxes, though at a much larger scale. These deductions help offset his income by lowering his adjustable gross income.
While reportedly, Trump Tower in Manhattan earns the President around $20 million a year profit, he loses $315 million on his golf courses and his Washington Hotel has lost $55 million since opening in 2016. The report states that Trump has a $100 million balloon mortgage payment due in 2022 on Trump Tower and is likely to be refinanced. It also states that if he losses his battle with the IRS on the $73 million refund, he could owe the IRS $100 million.