Trump spent $1m bailing out Donald Jr's failed business in 2018, new tax returns show

[BlueWaveNeverEnd]

https://www.msn.com/en-us/news/politics/trump-spent-1m-bailing-out-donald-jr-s-failed-business-in-2018-new-tax-returns-show/ar-AA15Pl8r

In 2010, the former president’s eldest son started Titan Atlas Manufacturing, which provided cast panels for prefabricated homes. But the company quickly ran into hard times. The Times reported in 2017 that it fell deeply into debt. That led to Mr Trump setting up a company called D B Pace to take over.


Mr Trump’s tax returns from 2018 show that the president suffered a $1m loss bailing his son’s beleaguered venture out. The Independent reached out to both Mr Trump and his son’s spokespeople.


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But Mr Trump’s bailout of his son’s troubled business was not the only assistance he gave to the younger Mr Trump, nor was he the only Trump child to receive assistance from the president.

The Ways & Means Committee’s report said in a report released last week that the elder Mr Trump made loans to his eldest son, his daughter Ivanka Trump and his second-born son Eric Trump totaling $51,000 and reported income from the interest in 2015.

https://www.msn.com/en-us/news/politics/trump-spent-1m-bailing-out-donald-jr-s-failed-business-in-2018-new-tax-returns-show/ar-AA15Pl8r

[getagrip_already]

1. Bs... it's only what he told the irs....

I seriously doubt he moved any monet to bail out junior.

But hw likely claimed he did.

[TexasBushwhacker]

2. If I default on a loan

whether through cancellation, forgiveness, discharge during bankruptcy, etc, I get a 1099-C and it's counted as taxable income for me and a deduction for whoever the creditor was.

[Ms. Toad]

3. This is utter nonsense.

In addition, in 2016, Mr Trump again reported interest income from the loans to those three children, which raises questions of whether they tried to avoid paying a gift tax. Mr Trump also reported interest income on his forms in 2017, 2018, 2019 and 2020.

Gifts are NEVER taxable to the recipients (his 3 children). They are taxable, if at all, to the donor (Trump) - as part of his estate when he dies.

In 2015 (assuming that is when the loans to his children were made), he and Ivanka were each permitted to give $14,000 to each child (or anyone else they feel like giving money to) without any reporting at all. They can also each give that much to the spouse of each child. So, assuming reasonably intelligent accountants, they could have given $56,000 to each of their children's families without any reporting requirements at all. Even if the $51,000 is above the annual exclusion, there are no current tax implications of a $51,000 gift - all it does is to reduce the size of the estate which is tax free when Trump dies.

I am still waiting for a reasonable explanation of why the $51,000 is disguised as a loan to avoid taxes.

This is the worst I've seen so far, since it expressly implies that Trump's children might have had to pay gift taxes - which would never be the case, even if the day before he died he gave his children his entire estate.

[kentuck]

4. In one of those years, he had to sell a property that formerly belonged to his father.

I recall that it was $20 some-odd million dollars? Would he have had to pay taxes on that sale?

He combined his tax bill with another year where he "wrote-off" another $twenty-odd million dollars worth of debt and ended up paying almost a million dollars in taxes in that year.

In 2020, he did not pay any taxes, due to another huge write-off.

(I suppose the sale may have been public information and he could not hide it?)