Trump’s Tax Returns Reveal Sweet Loans For Ivanka and Her Siblings

The billionaire real estate agent used low-interest real estate loans to pass some of his wealth on to his children—and he may have employed tax tricks to make sure it all happened. under the law.

DDonald Trump’s tax returns show that he gave his favorite loans to his three grown children—Don Jr., Ivanka and Eric—saving them a small fortune while adding to the surrounding fraud. the former president’s tax policies.

Congressional investigators flagged the loans last month in a report, questioning whether they made “fake gifts” and saying they should be investigated further. Soon after, the House Ways and Means Committee passed Trump’s tax bill. That was allowed Forbes analyzes data including Donald Trump’s personal balance sheets and loan interest rates, to reveal how generous they are and why researchers also liked them.

The younger Trumps owed their father $4.55 million and paid him about $50,000 in annual interest from 2015 to 2020, according to the documents. That figure suggests that those payments inherit a total interest rate of about 1.1%.

The low rate may raise some concerns for those who are familiar with the complexity of the tax law, since the Tax Office of the Tax Office oversees the rates that parents can then offer it for their heirs, a way to prevent people from transferring money through fraudulent loans. Every month, the IRS publishes something similar to the minimum acceptable rates, which, during most of the period in question, remained above 1.1% for long-term loans, explaining that those scheduled for more than nine years.

Donald Trump’s balance sheets suggest that his children owe him more than nine years. So how did the Trumps pay so little interest? Lenders are allowed to pay lower rates on short-term loans. If the loans came with shorter terms, but were refinanced to make them better, Don Jr., Ivanka and Eric might be able to borrow their son for a longer period of time while still using the lower rate.

By email to Forbes, Eric Trump appeared to appear in such a story, responding to questions about how he and his siblings were able to legally pay less interest by submitting loan history tables. in the middle – it is scheduled for three to nine years – and long. – permanent loan. Then he added, in another message, “Please don’t think it’s a long time.”

The history of loans dates back to twenty years. In 2004, Ivanka Trump told Oprah Winfrey that her father was giving her a house after she left the University of Pennsylvania. “A great gift my father gave me recently was an apartment because I graduated, and I don’t want to live at home anymore,” he said. That fall, however, a deed was revealed in New York City records that said Ivanka bought the apartment—and didn’t receive it as a gift. He paid $1.5 million, more than $1 million less than the price of the place, according to an analysis of similar sales.

Donald Trump’s personal balance sheets suggest that Ivanka borrowed all the money he needed from him and that he did not have to make regular payments on the loan. At the time of the sale, 30-year bank mortgages came with rates of about 6%. During the period where Trump’s tax returns are available, from 2015 to 2020, Ivanka gave her father $18,000 annually, paying 1.2% interest.

However, Ivanka used the sale to brag about her independence from her father. “I have a two-room apartment in the Trump house, but no one gave it to me,” he wrote in his letter The Trump Card. “I didn’t even benefit from a special price.” In addition to ignoring the fact that he benefited from a cost of the insurer, Ivanka also clarified the details of the financing, saying that his loan is similar to the one that can be obtained by others from regular investors. “I’m paying a mortgage on my apartment, just like my brothers, Don and Eric, are paying mortgages on their apartments in other Trump properties. It’s true, I pay my mortgage directly to my father instead of the bank, but the mortgage is the same.”

Eric Trump also received terms that a bank might not offer. In 2007, he bought a $2.04 million apartment from his father, apparently borrowing $2 million from his father. The elder Trump’s personal balance suggests that Eric, like Ivanka, should not make regular payments. When Eric bought his apartment, standard 30-year mortgages came with interest rates of more than 6%. But Donald Trump’s tax returns show that Eric paid $24,000 in annual interest, at a 1.2% rate, from 2015 to 2019. In 2020, with Donald Trump in office and Eric, who manages the family business, his interest dropped to $19,605, less than 1% of the principal on the loan.

Don Jr. followed. in a slightly different way than his siblings, buying apartments in many buildings of New York City. In 2010, he canceled the debt on one of the units when he sold it for $855,000 more than he bought it for. He retained $1.05 million in debt, however, apparently his father had given him against another property. Don Jr. paid the lowest interest of any of the three Trump children, according to an analysis of his father’s tax returns and balance sheets, just 0.8%, adding up to $8,715 a year.

If the Trumps had arranged their loans properly, all these favors could be legal. “I tell my law students that there are two tax regimes out there – one for understanding and one for uniform,” said Jill Miller, a tax attorney and professor at Cornell University. informed people have the ability to make the best decisions for their families.”

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