Former President of the United States, Donald Trump faces a potential financial setback of approximately $100 million due to improper tax deductions related to his Trump Tower skyscraper in downtown Chicago.
This is according to an Internal Revenue Service (IRS) audit obtained by ProPublica and the New York Times, Forbes news first reported.
This revelation poses the latest financial challenge for the 2024 GOP nominee, despite a rise in his net worth fueled by the success of Truth Social.
The issue revolves around a double write-off for the iconic 192-story tower on the Chicago River.
The main issue
In 2008, Trump claimed significant losses for the tower, asserting that the property was “worthless” due to the substantial debt associated with its construction.
He reported losses of up to $651 million for the tower that year, even before its official opening. However, in 2010, Trump transferred ownership of the tower into a new partnership under his control and declared additional losses of $168 million, effectively attempting to write off the same losses twice.
This move attracted scrutiny from the IRS, leading to a revision by the agency and the imposition of a tax bill exceeding $100 million, as per the report.
What this means for Trump
Despite this looming financial liability, Trump’s net worth has witnessed a surge following the successful debut of Truth Social’s parent company on Wall Street.
With a significant stake in Trump Media & Technology Group Corp., Trump’s net worth has more than doubled, reaching approximately $5.6 billion.
This windfall is particularly timely for Trump, given his ongoing legal battles, including substantial civil judgments totalling over $542 million from multiple cases over the past year.
Notably, he faces a $454.2 million judgment in a New York civil fraud case, along with a $91.6 million bond in a defamation case with writer E. Jean Carroll.
Regardless, Forbes estimates Trump’s real-time net worth at around $7.7 billion, ranking him as the world’s 346th richest person.
His wealth is derived not only from his stake in Trump Media but also from his extensive real estate holdings, including properties valued at $1.1 billion in major cities like New York, Chicago, and Las Vegas, as well as luxury golf clubs and resorts, notably Mar-a-Lago in Florida, valued at $810 million.
Some context
Former President Donald Trump, aged 77, finds himself in an unprecedented position as the first former president in U.S. history to face criminal charges. Presently, he confronts numerous charges across four distinct cases, marking a significant chapter in his legal saga.
However, Trump’s legal entanglements extend beyond criminal charges, as he also grapples with several civil cases linked to his renowned business empire.
Furthermore, crucial legal appeals remain unsettled, including one determining whether he maintains immunity from prosecution.
The genesis of Trump’s legal tribulations stems from the first of his four criminal cases, wherein he was indicted in New York City on March 30, 2023.
These charges pertain to an alleged scheme aimed at concealing allegations of extramarital affairs that emerged during his initial White House campaign in 2016.
