Trump Gets 25 Million Tax Write-Off For Trump University Settlement

[n2doc]

Robert W. Wood , CONTRIBUTOR

President-elect Donald J. Trump has agreed to pay $25 million to settle lawsuits over Trump University. In paying off former students and their lawyers, he is admitting no wrongdoing. Yet, he has often said he would never settle. The plaintiffs alleged that they paid up to $35,000 in tuition for little in return. And the New York Attorney General complained too, which makes this package deal important for someone with bigger issues to deal with before January.

The deal resolves several pieces of Trump University litigation, including two federal class-action cases. Significantly, it also resolves a separate lawsuit by New York Attorney General Eric T. Schneiderman, who said:

I am pleased that under the terms of this settlement, every victim will receive restitution and that Donald Trump will pay up to $1 million in penalties to the State of New York for violating state education laws. The victims of Trump University have waited years for today’s result, and I am pleased that their patience — and persistence — will be rewarded by this $25 million settlement.”

Of course, the real cost to Mr. Trump is after tax, not before it. And most business settlements are fully tax deductible. The only part that arguably may not be here is the $1 million in penalties. But barring express non-deductibility commitments, many penalties can be deducted, too. In general, fines and penalties paid to the government are not deductible. Section 162(f) of the tax code prohibits deducting ‘‘any fine or similar penalty paid to a government for the violation of any law.’’

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http://www.forbes.com/sites/robertwood/2016/11/18/trump-gets-25-million-tax-write-off-for-trump-university-settlement/#248481a85c6a

[pangaia]

1. Well that sure gets THAT out of the news.

But then there are emails.