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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDonald Trump Has Never Explained a Mysterious $50 Million Loan. Is It Evidence of Tax Fraud?
https://www.motherjones.com/politics/2019/09/donald-trump-has-never-explained-a-mysterious-50-million-chicago-unit-acquisition-loan-is-it-evidence-of-tax-fraudDonald Trumps massive debtshe owes hundreds of millions of dollarsare the subject of continuous congressional and journalistic scrutiny. But for years, one Trump loan has been particularly mystifying: a debt of more than $50 million that Trump claims he owes to one of his own companies. According to tax and financial experts, the loan, which Trump has never fully explained, might be part of a controversial tax avoidance scheme known as debt parking. Yet a Mother Jones investigation has uncovered information that raises questions about the very existence of this loan, presenting the possibility that this debt was concocted as a ploy to evade income taxesa move that could constitute tax fraud.
Heres what is publicly known about this mystery debt: On the personal financial disclosure forms that Trump must file each year as president, he has divulged that he owes over $50 million to a company called Chicago Unit Acquisition LLC. The forms note that this entity is fully owned by Trump. In other words, Trump owes a large chunk of money to a company he controls.
The disclosures state that this loan is connected to Trumps hotel and tower in Chicago, and the forms reveal puzzling details about Chicago Unit Acquisition: It earns no revenuesuggesting that Trump was not paying interest or principal on the loanand Trump assigns virtually no value to Chicago Unit Acquisition. Something doesnt add up. Under basic accounting principles, a firm that is owed money and has no outstanding debt should be worth at least as much as it is owed. The loan has another odd feature: It is identified as a springing loan, a type of loan made to borrowers who are viewed as credit risks. Known sometimes as bad boy loans, these agreements allow the lender to impose harsh repayment terms if certain criteria arent met. These are not the type of loan terms that someone is likely to impose on himself.
The Trump Organization has consistently refused to answer questions about Chicago Unit Acquisition, a limited liability company it formed in Delaware in 2005, as construction began on the Trump International Hotel and Tower in downtown Chicago. But Trump did tell the New York Times in a 2016 interview that this debt represents a loan he repurchased from a group of lenders. We dont assess any value to it because we dont care, Trump said. I have the mortgage. That is all there is. Very simple. I am the bank. Jason Greenblatt, who was then the Trump Organizations top lawyer, declined to explain to the Times the reason for the Chicago Unit Acquisition deal. Its really personal corporate trade secrets, if you will, he said. Neither newsworthy or frankly anybodys business.
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soothsayer
(38,601 posts)Blue Owl
(50,401 posts)jmowreader
(50,559 posts)Real billionaires finance everything they do if for no other reason than they can deduct the interest from their taxes.
Trump is either laundering money or committing tax fraud. And knowing who Trump is, I'm leaning toward money laundering.
fleur-de-lisa
(14,625 posts)Mekonsrevenge
(32 posts)The entire retail floor is empty. The retailers all bailed. The high end restaurant 16 is closed and has been replaced by a casual bistro that's usually empty. Many units are up for sale and advertised by address only. A realtor told me only a few are listed at a time to keep prices from crashing although Crain's reported they're selling well below market. Dunno if any of this relates to the loan, but it looks like Trump and the suckers who bought condos are bleeding cash. And have been since he slapped his name on it.
Wellstone ruled
(34,661 posts)Ed Burke the Alderman who front ran the Real Estate Tax fraud connected to this Building. As per a acquaintance whom has a Relative working in the County Attorneys office,sounds like tons of out side pressure being applied to delay this case.
onethatcares
(16,169 posts)I can obtain a loan from myself, use that loan to purchase a piece of property that I own, show no income. I can then go to a bank or myself and obtain a hard cash loan in order to keep myself afloat financially? I can then default on the loan to myself and keep the hard cash or at least the property the initial loan is based on?
I'm at a loss here as I'm not big money financially smart these are first things that occurred to me.
SWBTATTReg
(22,130 posts)all loans should have as a minimum, to be considered a loan, for tax purposes and here, he's obviously failing to declare as income any residuals from the 'fake' loan and/or failure to make any interest payments or declare any income etc. This sounds totally fishy and doesn't ring any accounting bells w/ me and my auditing background, otherwise, why have the entity?