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Trump Could Owe $100 Million Over Improper Tax Breaks, Report Says—Latest Financial Threat Even As His Net Worth Soars

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7 months ago

May 11, 2024

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Trump Could Owe 0 Million Over Improper Tax Breaks, Report Says—Latest Financial Threat Even As His Net Worth Soars

Topline

Former President Donald Trump could owe roughly $100 million for improper tax breaks on his Trump Tower skyscraper in downtown Chicago, according to an Internal Revenue Service audit obtained by ProPublica and the New York Times, dealing the 2024 GOP nominee his latest financial hit, even as his net worth continues to climb on a Truth Social windfall.

Former President Donald Trump doubled his tax write-offs for his Trump tower in Chicago, according … [+] to an Internal Revenue Service audit.

AFP via Getty Images

Key Facts

Trump could be forced to pay the massive tax bill due to a double write-off for the 192-story tower on the Chicago River, the New York Times reported Saturday in partnership with ProPublica.

The issue stems from a 2008 write-off for the Chicago tower, when Trump claimed the 92-story hotel and condo building that bears his name qualified as “worthless” due to his massive debt on the project.

Trump reported at the time he lost up to $651 million on the tower that year, one year before it officially opened, according to the Times and ProPublica report.

But in 2010, Trump shifted ownership of the tower into a new partnership still under his control, and declared another $168 million in losses—appearing to write off the same losses twice—prompting IRS scrutiny that ultimately resulted in an agency revision and a new IRS tax bill for over $100 million, according to the report, citing unnamed tax experts.

Contra

Trump’s net worth has skyrocketed since the parent company behind his social media platform Truth Social made its Wall Street debut. With Trump’s 114.8 million shares in parent company Trump Media & Technology Group Corp., the former president has more than doubled his net worth, with his majority stake worth roughly $5.6 million as of Thursday. That windfall comes at a critical time for Trump, who faces over $542 in civil judgments from three cases over the past year, including $454.2 million he was ordered to pay after being found liable for fraudulently inflating the value of his assets in his New York civil fraud case. Trump’s bond in that case was temporarily lowered in March to $175 million after Trump claimed he could not secure a company to issue him a bond for the full amount and New York Attorney General Letitia James threatened to seize his properties if Trump missed his payment deadline, though he could still pay the full $454.2 million. Trump also posted a $91.6 million bond—including interest—in March for an $83 million judgment in a defamation case with writer E. Jean Carroll, who accused Trump of sexually assaulting her in the 1990s. Trump had previously been ordered to pay $5 million in a separate civil judgment in the defamation case with Carroll.

Forbes Valuation

We estimate Trump’s real time net worth stands at approximately $7.7 billion, making him the world’s 346th richest person as of Saturday morning. In addition to his shares tied up with Trump Media, Trump’s net worth also comes largely from his expansive real estate portfolio, including $1.1 billion in properties as of March, including in New York, Chicago and Las Vegas, as well as $810 million in luxury golf clubs and resorts, including his Mar-a-Lago Florida estate, the crown jewel of his real estate portfolio.