'Double-Dip': Donald Trump May Owe $100 Million From Dubious Tax Breaks Over Chicago Tower
May 12 2024, Published 1:00 p.m. ET
Former President Donald J. Trump is facing an IRS inquiry over improper tax breaks claimed for his troubled Chicago tower, RadarOnline.com has learned.
The 92-story skyscraper, the tallest among the GOP leader's projects, was a financial failure due to cost overruns and poor timing during the Great Recession.
Donald Trump could owe $100 million over Chicago tower.
The Internal Revenue Service (IRS) inquiry suggests that Trump could face a tax bill exceeding $100 million due to a yearslong audit battle over the "double dip" claims.
Originally intended to be a profitable venture, the tower faced significant cost overruns and adverse market conditions, leading to substantial losses.
When Trump attempted to leverage these losses for tax benefits, the IRS alleged that he crossed legal boundaries by claiming the same losses twice.
Trump is under an IRS inquiry.
The first instance arose in 2008, when the New York businessman claimed the tower investment as "worthless," resulting in reported losses of up to $651 million for the year.
The IRS did not initially challenge this claim, surprising tax experts. However, in 2010, Trump executed a maneuver to claim an additional $168 million in losses, leading to the prolonged IRS inquiry.
Trump already owes hundreds of millions in lawsuit fines.
In response to queries about the inquiry, Eric Trump, Executive Vice President of the Trump Organization, stated that the matter was resolved years ago and was revived during his father’s presidential run.
He expressed confidence in their position, backed by opinion letters from various tax experts, including the former general counsel of the IRS.
Trump has denied all criminal wrongdoing.
Apart from the IRS audit, Mr. Trump faces multiple financial challenges, including defamation and fraud cases, as well as a criminal trial.
The ongoing audits could further add to the financial strain, especially with potential hefty tax bills looming over his past dealings.
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As RadarOnline.com previously reported, Trump was found liable for $454 million in New York fraud ruling — a sum that was increasing daily due to added interest.
The embattled ex-president also recently hinted at the possibility of mortgaging or selling off his properties at discounted prices — referring to it as a “fire sale” — to cover the initial $464 million appellate bond.
“Nobody has ever heard of anything like this before,” Trump fumed on Truth Social. “I would be forced to mortgage or sell Great Assets, perhaps at Fire Sale prices, and if and when I win the Appeal, they would be gone. Does that make sense?”
“WITCH HUNT,” the ex-president added at the time. “ELECTION INTERFERENCE!”
