An analysis of his tax records by The Times shows that after the Trump International Hotel and Tower in Chicago ran into financial trouble, major banks and hedge funds slashed Trump’s big recession, giving him years of extra time to pay off his debts, most of which were eventually. forgive.
And although forgiven and previously unreported debt will usually fuel a sizeable tax bill, Trump appears to have been unable to pay nearly any federal income tax, the New York Times reported, in part due to the large financial losses incurred by his other companies. .
The Trump Organization’s legal director, Alan Garten, told The Times that the organization and Trump had paid all necessary taxes on debt relief.
“These were all commercial deals that were voluntarily entered into between sophisticated parties many years ago in the wake of the 2008 global financial crisis and the resulting collapse in real estate markets,” Garten said.
According to The Times, Trump arranged for two of his LLC to borrow more than $ 700 million to develop Chicago and went to Deutsche Bank to get the majority of the money.
The newspaper said that the bank had agreed to loan $ 640 million for the project, but after construction delays, it was time to pay off the loan while parts of the building were still incomplete.
While Deutsche initially granted Trump an extension to repay the loan, after it turned down an additional extension request, Trump filed a lawsuit against the bank with the Fortress Investment Group – which had loaned $ 130 million for the project – and other banks and hedge funds. It has bought parts of those loans, the newspaper reported.
According to the newspaper, Trump accused Deutsche of “predatory lending practices.” The bank responded with its own lawsuit demanding repayment of the loan.
In July 2010, Deutsche Bank, Fortress and Trump reached a private settlement without disclosing the terms, The New York Times reported. But Trump’s federal tax returns and loan document show that about $ 270 million in debt has been forgiven the project.
The newspaper reported that in both the year he won the presidency and his first year in the White House, Trump paid only $ 750 in federal income taxes.
Trump denied the New York Times story and claimed he pays “a lot” in federal income taxes.