Trump May Owe Over $100M in Taxes After Chicago Tower Audit

Former US President Donald Trump is potentially facing an IRS bill exceeding $100 million following a government audit related to tax deductions on a Chicago skyscraper. This development comes from a collaborative report by The New York Times and ProPublica, which utilized information from a lengthy audit and public filings. The focus on Trump's business dealings intensifies as he aims to reclaim the presidency in the upcoming election, despite his refusal to release his tax filings, a departure from the practice of past presidential candidates.

The controversy centers around the Trump International Hotel and Tower in Chicago. According to the report, Trump initially claimed losses of $658 million in 2008, arguing the property was "worthless" due to underwhelming condominium sales and vacant retail space during the US recession. Subsequently, in 2010, Trump reportedly transferred ownership of the property to another holding company he controlled, claiming an additional $168 million in losses over the next decade for the same property.

Despite these claims, Trump's presidential campaign has responded, with a statement from Eric Trump indicating confidence in their position and suggesting that the IRS inquiry had been resolved years prior, only to resurface with Trump's political ambitions. The report, however, suggests that if Trump were to lose this audit battle, he could owe over $100 million, including penalties.

In parallel legal challenges, Trump is appealing a New York judge's ruling from February after a civil trial found that he and his executives misrepresented his wealth on financial statements. This judgment requires Trump to post a $175 million bond to prevent asset seizure while appealing the more than $454 million owed.

President Joe Biden has critiqued Trump's financial success as largely inherited from his father and criticized his reluctance to pay taxes. Meanwhile, Biden's administration has increased IRS funding to enhance audits on the ultra-wealthy and ensure compliance with tax laws—a move opposed by Trump's campaign. Trump has also warned that failure to extend his 2017 tax cuts could have dire consequences for the United States.

This situation places Trump's financial practices under scrutiny once again as he navigates legal challenges while eyeing a return to political power. The outcome of these audits and appeals could have significant implications for his campaign and financial standing.