Donald Trump could be in trouble after the New York Times revealed that the nominee could have avoided federal income taxes. Jack Mitnick, a lawyer and former accountant for Trump claims that the billionaire businessman cheated the government out of millions for almost two decades.
According to Heavy, Trump claimed a staggering income loss of $915,729,293 back in 1995. By utilizing a loophole known as “net operating loss,” Trump was able to fold his business losses into his personal income tax returns.
This means he was able to use the declared losses to from his businesses to cancel out his personal income tax obligations. This has been a common practice for wealthy Americans in order to pay the least amount of income tax.
Donald Trump Avoided Paying Federal Income Tax Accountant Returns
Jack Mitnick also revealed that Donald Trump might have faked his signature on his 1984 tax return. He served as Trump’s witness in a tax appeal case he filed in 1992.
Trump’s returns showed no income at all, but claimed $626,264 in expenses. A judge noted that the documents did not explain how significant expenses, without any concomitant income from his consulting business.
According to Mother Jones, a lawyer for Trump threatened the New York Times “prompt initiation of appropriate legal action.” According to them, the publication of the GOP nominee’s records was illegal.
The Trump campaign also responded to the report stating that “Mr. Trump has paid hundreds of millions of dollars in property taxes, sales and excise taxes, real estate taxes, city taxes, state taxes, employee taxes and federal taxes.”
Trump’s finances have been the subject of speculation not just by the Clinton campaign but also his fellow Republicans. He has repeatedly refused to release his tax returns citing an ongoing audit as the reason.
What are your thoughts about Donald Trump and his alleged tax fraud? Let us know in the comments below.