Quote:
Originally Posted by flashfire
916M loss on his 1995 return.....so if he did 150M every year in the from 95-2005 he should have broke even.
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Remember, that having a loss doesn't mean that you lost everything you have.
I could be worth a million dollars...then have one of my businesses that would have it's own bank account and money have a bad year and have a loss.
Didn't affect my original million. Didn't affect my other business. But it was a loss. I can now use that loss for taxes (according to how my overall corporation is structured, etc.)
I have no idea how Trump is set up...but I would assume it's done in an efficient way that is best for tax purposes (taxes are one of the biggest expenses for every business).
What I'm trying to say is...you can show a major loss one year when something goes bad. Doesn't mean you are broke, and it doesn't mean you can't make a killing the following year...but it DOES give you all of that loss to write off of your taxes.
It's a simple deduction. And you can break it up into chunks over the years.
My own accountant did the same thing when he got divorced over a decade ago and lost everything.
He was able to write that big loss off over the next several years.
It's more common in the business world than you would think. And of course if you listened to the anchors over at CNN during the campaign you would come away thinking this was something that had never been done before and was borderline criminal activity.
