1. Former President Donald Trump may face a $100 million tax bill for claiming tax benefits on his struggling Chicago skyscraper twice.
2. The IRS inquiry revealed Trump tried to write off financial losses associated with the Trump International Hotel and Tower Chicago multiple times.
3. Trump and his tax advisors attempted to claim $168 million in new losses from the skyscraper project, leading to high-level legal review by the IRS.
Former President Donald Trump could be facing a $100 million tax bill after the IRS accused him of attempting to write off the same losses on his struggling 92-story Chicago skyscraper twice. The Trump International Hotel and Tower Chicago, built during the Great Recession, faced cost overruns and financial losses, leading Trump to claim he lost up to $651 million on the project on his 2008 tax return. However, the IRS later found that Trump tried to claim additional benefits from the project by manipulating the ownership structure of the company that owned the building. This move could result in Trump owing over $100 million in taxes.
The IRS conducted a “high-level legal review” before launching an inquiry into Trump’s tax write-offs related to the Chicago tower project. The agency believed that Trump’s actions would lead to a significant tax bill, which could exceed $100 million excluding penalties. Eric Trump, executive vice president of the Trump Organization, defended the company’s actions regarding the skyscraper project, stating that the matter was settled years ago but brought up again due to his father’s involvement in politics.
This news comes amidst other legal issues facing Trump, including a $83.3 million defamation judgment ordered in January and a $355 million penalty in February for inflating his property values fraudulently. Despite these challenges, Trump remains a prominent figure in the political landscape, with his personal finances under scrutiny as he prepares to potentially run for president again.