Trump explains away $1B in business losses
President disputes Times tax story detailing massive 1985-1994 deficits
WASHINGTON – President Donald Trump cited “write offs,” “depreciation,” tax shelters and accounting gamesmanship as reasons for business losses in the 1980s and 1990s after The New York Times reported details of his tax returns.
The Times said Trump’s businesses lost more than $1 billion from 1985 to 1994 – and he was able to avoid paying taxes in eight of those 10 years. Trump disputed the Times story but did not specify his objections.
“Real estate developers in the 1980’s & 1990’s, more than 30 years ago, were entitled to massive write offs and depreciation which would, if one was actively building, show losses and tax losses in almost all cases,” Trump tweeted early Wednesday.
Democrats questioned how he was able to stay afloat as he pursued his highly publicized business career.
Noting that a congressional committee seeks Trump’s tax returns, House Speaker Nancy Pelosi, D-Calif., tweeted that the Times story “underscores the importance of the Administration giving the Congress access” to those documents.
The newspaper reported that “year after year,” Trump “appears to have lost more money than nearly any other individual American taxpayer.”
In a pair of tweets, Trump said it was routine for real estate developers to report losses – “sometimes considered ‘tax shelter’ ” – which was done in part to renegotiate loans from banks.
Trump said, “You always wanted to show losses for tax purposes .... almost all real estate developers did – and often re-negotiate with banks, it was sport.”
Some financial analysts disputed Trump’s analysis, including one of the co-authors of The New York Times report.
“Some fraction of Donald Trump’s losses can be attributed to depreciation. We found most of it was just bad business,” tweeted Susanne Craig, a money reporter for the Times.
Trump said, “The very old information put out is a highly inaccurate Fake News hit job!”
Trump reported business losses of $46.1 million in 1985 and a total of $1.17 billion in losses over a 10-year period beginning that year, the Times article said.
The Times said it obtained the data via “printouts from Mr. Trump’s official Internal Revenue Service tax transcripts, with the figures from his federal tax form, the 1040, for the years 1985 to 1994.”
Unlike presidents since the Watergate era of the 1970s, Trump has refused to release his tax returns. This week, the
“Some fraction of Donald Trump’s losses can be attributed to depreciation. We found most of it was just bad business.”
Susanne Craig The New York Times
Treasury Department rejected a request from the House Ways and Means Committee for six years of Trump’s returns and some business filings.
The House committee cited a law saying Congress can review individual tax filings to help it develop tax laws.
Trump allies said Democrats want the returns to look for dirt on the president. Treasury Secretary Steve Mnuchin said he didn’t think the House panel’s request has a “legitimate legislative purpose.”
Rep. Richard Neal, D-Mass., chairman of the House Ways and Means Committee, indicated he may sue to get Trump’s taxes.
“He didn’t pay taxes for years and lost over $1 billion – how is that possible?” said Rep. Bill Pascrell, D-N.J., a committee member. “How did he keep getting more money, and where on earth was it all going? We need to know now.”