THE WANDERING TAX PRO
Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 45+-year veteran tax professional Robert D Flach.
Wednesday, October 5, 2016
IS TRUMP SMART FOR PAYING NO FEDERAL INCOME TAX – PART II
of Deplorable Donald Trump’s 1995 tax return has been leaked, showing that he
reported a net loss ofalmost $1 Billion!
the serial liar doesn’t want to release his tax returns!
suggests that Trump is a failed and
losing businessman, and not the savvy success that his ego needs you, and
his Presidential campaign wants you, to believe.
To be fair,
not that Trump has ever been fair to anyone, this is only a small part of one tax
return. We do not know what has caused
this huge loss, nor do we know what he has reported as income in previous or
What we do
know is that if Trump avoided paying income tax in multiple years because of
this huge loss it was not because he was smart and used special or
obscure tax loopholes to “play the rigged system”.His tax avoidance is the result of the
professionals who prepared his returns applying a legitimate, and actually
logical, tax deduction – the Net Operating Loss deduction.
certainly does not know any more about tax law than he does about anything
else, which is not much.(What he does know is how to screw investors,
lenders, contractors, vendors, employees, and customers)
Operating Loss concept is not a special tax preference, nor is it an inequity
in the otherwise mucking fess that is our US Tax Code, that needs to be
changed, reformed, or removed.It is, as
I said above, a legitimate and actually logical tax concept.
“I do have an interest in tax policy, and I
fear and expect a bunch of stupid proposals to further restrict and complicate
net operating loss use just because Trump might have gotten to use them.”
BTW – Joe’s
above referenced post has an excellent explanation of Net Operating Loss and
links to other blog posts on the subject.
As I have
said before, there is nothing wrong with legally using the existing tax law to
reduce or altogether avoid income tax liability.If a wealthy person pays no income tax the
fault is not with that person, or his or her tax professional, but with the
idiots in Congress who have totally FU-ed the US Tax Code.The solution is to totally shred the existing
Code and rewrite it from scratch.