First I'd like to say that the leaking of the tax returns (if true) is unlawful and I find it hard to believe that the final number was a flat $750 .
Putting that aside.............
The Tax Laws in this Country enacted by Congress are designed to benefit those in Real Estate perhaps more than any other industry. It has been this way my entire life and I am 58.
Wealth creation in this country can be found in no other area so much as Real Estate. Yes there are the guys that get rich going public and high tech but Real Estate wealth accumulation is at the top of the list. Also been this way my entire life.
Real Estate Developers get the use of other peoples money OPM. The tax codes allow the deduction of interest, taxes, repairs, maintenance, renovations, negative cash flow, and DEPRECIATION. These PLUS the usual staff and miscellaneous. Banks loan on Real Estate as they are secured loans backed by the underlying piece of Real Estate. In short, they are typically the safest loans that Banks make.
In addition to the write offs above. Real Estate developers / investors can write off losses and use losses against gains and carry forward losses into future years.
Real Estate Developers / Investors can DEFER taxes on gains by buying another like / kind property with the profits usually within 2 years. So they buy a property for 10 million and after a few years they sell for 15 million they can then acquire another property for 15 million and " put off" paying tax on the profit so it is not paid yet but paid down the road. They can also do 1031 exchanges trading one property for a like / kind property.
So when the average citizen sees or hears about this Trump tax situation (if true) you should understand that all of this is within our tax code. Meaning it is 100% within the law and in fact commonplace.
If you find that this bothers you please talk to your Representative in Congress.
Trump doesn't have a CPA. His organization has a huge team of Accountants and Tax Lawyers. This also is commonplace amongst the wealthy.
Putting that aside.............
The Tax Laws in this Country enacted by Congress are designed to benefit those in Real Estate perhaps more than any other industry. It has been this way my entire life and I am 58.
Wealth creation in this country can be found in no other area so much as Real Estate. Yes there are the guys that get rich going public and high tech but Real Estate wealth accumulation is at the top of the list. Also been this way my entire life.
Real Estate Developers get the use of other peoples money OPM. The tax codes allow the deduction of interest, taxes, repairs, maintenance, renovations, negative cash flow, and DEPRECIATION. These PLUS the usual staff and miscellaneous. Banks loan on Real Estate as they are secured loans backed by the underlying piece of Real Estate. In short, they are typically the safest loans that Banks make.
In addition to the write offs above. Real Estate developers / investors can write off losses and use losses against gains and carry forward losses into future years.
Real Estate Developers / Investors can DEFER taxes on gains by buying another like / kind property with the profits usually within 2 years. So they buy a property for 10 million and after a few years they sell for 15 million they can then acquire another property for 15 million and " put off" paying tax on the profit so it is not paid yet but paid down the road. They can also do 1031 exchanges trading one property for a like / kind property.
So when the average citizen sees or hears about this Trump tax situation (if true) you should understand that all of this is within our tax code. Meaning it is 100% within the law and in fact commonplace.
If you find that this bothers you please talk to your Representative in Congress.
Trump doesn't have a CPA. His organization has a huge team of Accountants and Tax Lawyers. This also is commonplace amongst the wealthy.
