Report alleges U.S. president received far more money from his father’s business dealings than he has claimed in the past
Donald Trump helped his parents dodge millions of dollars in taxes and received far more money from his father’s real estate empire than he has claimed in the past, The New York Times reported on Tuesday.
Trump “participated in dubious tax schemes during the 1990s, including instances of outright fraud, that greatly increased the fortune he received from his parents,” the newspaper said.
Trump has stated on numerous occasions that he received little help from his father, New York property developer Fred Trump, in building his fortune. But the newspaper said its exhaustive investigation of a vast trove of tax returns and confidential records found this was not true.
It said that Trump received the equivalent of $413 million in today’s dollars from his father’s real estate activities. “By age 3, Mr. Trump was earning $200,000 a year in today’s dollars from his father’s empire,” the Times said. “He was a millionaire by age 8. Soon after Mr. Trump graduated from college, he was receiving the equivalent of $1 million a year from his father,” it said. “The money increased with the years, to more than $5 million annually in his 40s and 50s.”
It added: “Much of this money came to Mr. Trump because he helped his parents dodge taxes. He and his siblings set up a sham corporation to disguise millions of dollars in gifts from their parents.”
Trump also “helped his father take improper tax deductions worth millions more,” the newspaper added. “He also helped formulate a strategy to undervalue his parents’ real estate holdings by hundreds of millions of dollars on tax returns, sharply reducing the tax bill.”
The Times said Trump’s parents, Fred and Mary Trump, who died respectively in 1999 and 2000, transferred more than $1 billion in wealth to their children. This could have produced a tax bill of at least $550 million but the Trumps paid a total of just $52.2 million, the Times said, citing tax records.
Trump declined to comment on the article but Charles Harder, one of his lawyers, issued a statement to the newspaper. “The New York Times’s allegations of fraud and tax evasion are 100 percent false, and highly defamatory,” Harder said. “There was no fraud or tax evasion by anyone. The facts upon which The Times bases its false allegations are extremely inaccurate.”
“President Trump had virtually no involvement whatsoever with these matters,” Harder added. “The affairs were handled by other Trump family members who were not experts themselves and therefore relied entirely upon the aforementioned licensed professionals to ensure full compliance with the law.”
Breaking with the practice of past presidents, Trump has refused so far to release his tax returns.