Donald Trump's Very Yuge Tax Problem

[T.G.G. Moogly]

The problem isn't that Trump didn't pay taxes, the problem is that this illustrates that Trump is the beneficiary of the very system that his followers believe is unfair. Now they will be told that since Trump knows how to game the system better than anyone he will be the one who can fix it. Their little heads will bobble and they will all cheer.

Pretty much. It keeps "the" in "The government" and lets them keep hating it because it makes them feel good. They all know they shouldn't be paying taxes anyway.

Who was it that started the thread asking if americans are spoiled stupid?

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The tax code encourages people to post big losses and then rewards them for doing so. That's fucked up.

Yes, the true path to prosperity is losing tons of money so you can write off 35 cents on the dollar of it on your taxes.

If you really believe he lost that money I have a nice bridge for sale in Brooklyn.

 

[Elixir]

It's not Trump that's a genius, it's his Accountants and Tax Attorneys...

Later,
ElectEngr

Trump's "genius" is in having spent his entire life ripping off the middle class and taxpayers in general, then being able to convince a significant number of his victims that he's the guy who is going to save them from guys like Donald Trump. Incredible.

 

[barbos]

The typical person would be ruined if the market crashed on them. They wouldn't be able to make up from the hurt by pushing the losses against their taxable income for the next decade.

From my experience the average person can only deduct $2000 per year in capital losses from investments. But real estate or a business might be different.

Well, yeah, I remember something like that. What it means you need regular income to offset your capital losses. If you don't or your losses are much bigger then you need make a company or something.

ETA: What I meant was you can only carry over $2000 per year to subsequent years. Still, it doesn't seem fair.

I agree, that's totally unfair and tax laws are a mess in US.

 

[Horatio Parker]

One point is that these are pre-audit forms.

So he claimed those losses, but we don't know to what extent they were allowed.

 

[laughing dog]

If you took off your ideological blinders, it would improve your reading comprehension. This is a form of income averaging which is not permitted for most people.

I'm in the dark on this, so the only situation I think the typical person could potentially even use such a thing would be if they sold their home and were allowed to average out that sale over time. Does that count?

Prior to 1986, you could average your income over 5 years. This allowed people with drastically fluctuating incomes (regardless of the sources of that fluctuation) to smooth their tax payments out and possibly reduce their overall 5 tax bill.

 

[ronburgundy]

Given most of his claimed loses were during economic upswings, either he lied about the loses (and should be in jail), or he is even more incredibly incompetent in his economic decisions than we thought.

 

[T.G.G. Moogly]

It's not Trump that's a genius, it's his Accountants and Tax Attorneys...

Later,
ElectEngr

Trump's "genius" is in having spent his entire life ripping off the middle class and taxpayers in general, then being able to convince a significant number of his victims that he's the guy who is going to save them from guys like Donald Trump. Incredible.

Stupid is as stupid does.

 

[Jimmy Higgins]

I'm in the dark on this, so the only situation I think the typical person could potentially even use such a thing would be if they sold their home and were allowed to average out that sale over time. Does that count?

Prior to 1986, you could average your income over 5 years. This allowed people with drastically fluctuating incomes (regardless of the sources of that fluctuation) to smooth their tax payments out and possibly reduce their overall 5 tax bill.

Thanks. So post 1986 that isn't the case now, and only the uber-wealthy can pull off this manuever?

 

[Shadowy Man]

The problem isn't that Trump didn't pay taxes, the problem is that this illustrates that Trump is the beneficiary of the very system that his followers believe is unfair. Now they will be told that since Trump knows how to game the system better than anyone he will be the one who can fix it. Their little heads will bobble and they will all cheer.

Why the hell would he want to fix it?!?! It's working exactly the way he wants it to!

People like him have paid a lot of good money to get politicians to write the tax code in their favor so that they can pay as little taxes as possible and say "hey, I just did what was legal".

 

[laughing dog]

Prior to 1986, you could average your income over 5 years. This allowed people with drastically fluctuating incomes (regardless of the sources of that fluctuation) to smooth their tax payments out and possibly reduce their overall 5 tax bill.

Thanks. So post 1986 that isn't the case now, and only the uber-wealthy can pull off this manuever?

My understanding is that commercial fisherman and farmers can income average. Anyone else can carry forward losses to offset tax liabilities in the future. And while it is true that anyone else can do that, the reality is that most people are not in a position to use that form of income averaging.

 

[Horatio Parker]

Prior to 1986, you could average your income over 5 years. This allowed people with drastically fluctuating incomes (regardless of the sources of that fluctuation) to smooth their tax payments out and possibly reduce their overall 5 tax bill.

Thanks. So post 1986 that isn't the case now, and only the uber-wealthy can pull off this manuever?

Real estate professionals can. Defined as someone who works at least 750 hrs/yr in the biz.

 

[dismal]

If you really believe he lost that money I have a nice bridge for sale in Brooklyn.

Ah, we've left the realm of reality I see.

Maybe there's a way to get back: why don't you claim a $900 million loss on your next tax return and report back on what happens.

 

[RavenSky]

The point is do you want this man to have most important job on this planet.All the quibbling about tax law is just noise.He is a con man.and never should have any real power over anything. He has duped the uniformed.

The bolded is one of the key points. The other is that he is a narcissistic egomaniac that can't let the slightest slight (real or perceived) go without going nuclear. Either one should have eliminate him from even getting this far. That he is the Republican nominee and even remotely close in the polls just shows how easy it is for a country to go from a democracy to an insane asylum.

 

[Alcoholic Actuary]

I'm positive those individuals defending Trump's tax gaming as some sort of act of genius are the very same people applauding those who game the welfare system and have extra kids that they can't pay for.

Because, you know...consistency.


aa

 

[dismal]

I'm positive those individuals defending Trump's tax gaming as some sort of act of genius are the very same people applauding those who game the welfare system and have extra kids that they can't pay for.

Because, you know...consistency.


aa

"Reporting a loss" not equal "tax gaming". You try to claim you are a knowledgeable financial professional but then you say things that make you look like a shameless partisan hack.

 

[laughing dog]

AA certainly predicted the consistency part on the nose.

 

[RavenSky]

The problem isn't that Trump didn't pay taxes, the problem is that this illustrates that Trump is the beneficiary of the very system that his followers believe is unfair. Now they will be told that since Trump knows how to game the system better than anyone he will be the one who can fix it. Their little heads will bobble and they will all cheer.

^^^ that

The problem isn't that Trump didn't pay taxes, the problem is that this illustrates that Trump is the beneficiary of the very system that his followers believe is unfair. Now they will be told that since Trump knows how to game the system better than anyone he will be the one who can fix it. Their little heads will bobble and they will all cheer.

Why the hell would he want to fix it?!?! It's working exactly the way he wants it to!

People like him have paid a lot of good money to get politicians to write the tax code in their favor so that they can pay as little taxes as possible and say "hey, I just did what was legal".

He won't fix it... except to the extent that by "fix it" he means to game it even more in his own favor. (That and ego are the only reasons he wants to be President).

But his ridiculous Trumpette followers are too stupid to see this.

 

[Tom Sawyer]

I'm positive those individuals defending Trump's tax gaming as some sort of act of genius are the very same people applauding those who game the welfare system and have extra kids that they can't pay for.

Because, you know...consistency.

Ya, sort of like those individuals who are against murderers are also equally incensed by people who only come to a rolling stop at stop signs because both are examples of breaking the law and are therefore equivalent. Anyone who disagrees is nothing more than a partisan hack who can't see past their ideological blinders.

 

[dismal]

I'm positive those individuals defending Trump's tax gaming as some sort of act of genius are the very same people applauding those who game the welfare system and have extra kids that they can't pay for.

Because, you know...consistency.

Ya, sort of like those individuals who are against murderers are also equally incensed by people who only come to a rolling stop at stop signs because both are examples of breaking the law and are therefore equivalent. Anyone who disagrees is nothing more than a partisan hack who can't see past their ideological blinders.

Reporting a tax loss when you have had a tax loss is not the sort of thing that requires a defense.

It's like asking someone to defend using their left turn signal before making a left turn.

 

[Elixir]

Ya, sort of like those individuals who are against murderers are also equally incensed by people who only come to a rolling stop at stop signs because both are examples of breaking the law and are therefore equivalent. Anyone who disagrees is nothing more than a partisan hack who can't see past their ideological blinders.

Reporting a tax loss when you have had a tax loss is not the sort of thing that requires a defense.

If you declare a $900m loss, you WILL be audited and will have to defend it.

It's like asking someone to defend using their left turn signal before making a left turn.

...which is quite beside the issue if the driver has signaled a left turn then runs straight ahead through a red light...