An analysis of his tax records by the Times shows that after the Trump International Hotel and Tower in Chicago ran into financial problems, the big banks and hedge funds cut Trump’s significant arrears, giving him extra time to pay off debts, of which much eventually forgiven
While previously undeclared debt was usually fueled by a large tax bill, Trump appears to have failed to pay almost any federal income tax, the Times reported, in part because of significant financial losses suffered by his other businesses.
Trump’s chief legal officer, Alan Garten, told the Times that the organization and Trump had paid all the necessary taxes on the forgiven debts.
“All of these were within reach, which were voluntarily concluded between sophisticated parties many years ago, as a result of the global financial crisis in 2008 and as a result of the collapse of the real estate markets,” Garten said.
According to the Times, Trump arranged for two of his LLCs to borrow more than $ 700 million to develop Chicago and went to Deutsche Bank for most of the money.
The bank agreed to lend $ 640m for the project, the paper said, but after construction delays, the loan came while part of the building had not yet been completed.
While Deutsche initially granted Trump a loan repayment extension after rejecting an additional request for an extension, Trump sued the bank along with Forts Investment Group – which provided a $ 130 million loan for the project – and other banks and hedge funds that bought parts of those loans, the Times reported.
Trump, according to the newspaper, accused Deutsche of engaging in “predatory lending practices”. The bank responded with a lawsuit seeking repayment of the loan.
In July 2010, Deutsche Bank, Forts and Trump reached a private agreement without disclosing the terms, the Times reported. But Trump’s federal tax returns and loan document show he owed about $ 270 million from the forgiven project.
Both in the year he won the presidency and in his first year in the White House, Trump paid only $ 750 in income tax, the Times reported.
Trump has denied the New York Times story, claiming he pays “a lot” of federal income taxes.