Trump Taxes Show $1B in Business Losses: NYT

The transcript discusses Donald Trump's financial losses, focusing on his use of tax deductions and borrowing practices. It highlights how Trump managed to avoid declaring income from forgiven debts, a strategy uncommon among real estate developers. The discussion also touches on the tax code's treatment of debt forgiveness and the unique strategies Trump employed to sidestep potential tax liabilities.

What financial advantage do real estate developers like Donald Trump often have?

• They receive government subsidies.

• They can deduct more than their income due to depreciation and other expenses.

• They are exempt from all financial regulations.

• They can avoid paying any taxes.

How did Donald Trump manage to avoid repaying a significant amount of debt?

• He was relieved of the debt and did not declare it as income.

• He sold off his real estate assets.

• He declared bankruptcy.

• He negotiated lower interest rates.

What is typically required by the tax code when a loan is forgiven?

• The forgiven amount must be declared as income.

• The forgiven amount is tax-free.

• The forgiven amount can be reinvested tax-free.

• The forgiven amount must be returned to the lender.

What was unique about Trump's strategy regarding forgiven debt?

• He donated the forgiven amount to charity.

• He avoided declaring the forgiven debt as income using a sophisticated strategy.

• He used a common strategy employed by most taxpayers.

• He paid off the debt in full.

What did Trump's own lawyers warn him about his tax strategy?

• It was a common practice among real estate developers.

• It would result in immediate tax savings.

• It was unlikely to succeed if challenged by the IRS.

• It was completely legal and risk-free.