Are the Clintons trying to duck property taxes in New York?

Bill and Hillary split ownership of Chappaqua home, created trusts to shrink taxable estate

TRD New York /
Jun.June 17, 2014 05:55 PM

Bill and Hillary Clinton, longtime advocates of an estate tax, are allegedly trying to avoid paying taxes on their New York home.

Federal financial disclosures and local property records indicate that the Clintons split the ownership of their Chappaqua, New York home into 50 percent shares and created residence trusts into which they placed those shares. These moves are common strategies for millionaires looking to shrink the size of their taxable estate, Bloomberg reported.

Residence trusts like the ones the Clintons created not only deflect any appreciation in the house’s value, but also create set terms after which the property is transferred to a beneficiary. Only after the term of the trust is outlived can the asset move completely outside the estate. Additionally, by creating multiple trusts, property owners are able to spread the risk so that the death of one party would not affect the other party’s trust.

The Clintons, both of whom have supported higher taxes for the wealthiest Americans, have accrued their own fortune over the past decade as a result of paid speeches and book royalties. By the end of 2012, the couple was worth between $5.2 million and $25.5 million.

The estimated value of the house for property tax purposes is $1.8 million. The couple purchased their Chappaqua home for $1.7 million in 1999.

Critics are investigating the Clintons’ finances as Hillary Clinton tours the country to promote her book, “Hard Choices” — and tests the waters for a possible run for the White House. The former secretary of state was criticized for comments she made in an ABC interview, during which she said that the couple was “dead broke” after they left the White House in 2001. [Bloomberg]Sasha von Oldershausen


Related Articles

arrow_forward_ios
Photo illustration of Governor Andrew Cuomo (Credit: Cuomo by Stefani Reynolds/Getty Images; iStock)

Escaping New York? Tax man is right behind you

Escaping New York? Tax man is right behind you
New York City Comptroller Scott Stringer (Credit: Andrew Burton/Getty Images, iStock)

Coronavirus will cost city billions in tax revenue: comptroller

Coronavirus will cost city billions in tax revenue: comptroller
Taxes would rise for owners of Manhattan mansions and penthouses, but the biggest shock would be on homeowners in Brooklyn neighborhoods (Credit: Pixabay)

City’s property tax overhaul would increase burden for single-family homeowners

City’s property tax overhaul would increase burden for single-family homeowners
Antonio Reynoso and 140 Devoe Street in Brooklyn (Credit: Google Maps)

Council closes tax-lien loophole that threatened property seizures

Council closes tax-lien loophole that threatened property seizures
Governor Andrew Cuomo and Mayor Bill de Blasio (Credit: Getty Images)

Cuomo expects NYC to take lead on property tax reform

Cuomo expects NYC to take lead on property tax reform
A photo illustration of Michael Gianaris and Jeff Bezos (Credit: Getty Images, Wikipedia, iStock)

Gianaris wants to reform NYC tax credit programs that drew Amazon

Gianaris wants to reform NYC tax credit programs that drew Amazon
City Council Speaker Corey Johnson and Mayor Bill de Blasio (Credit: Getty Images, iStock)

NYC’s convoluted property tax system could get a big reboot

NYC’s convoluted property tax system could get a big reboot
State Sen. Julia Salazar and Assembly member Harvey Epstein proposed the tax this month in an effort to disincentivize real estate speculation (Credit: iStock, Getty Images)

Experts take issue with proposed tax on mezzanine loans

Experts take issue with proposed tax on mezzanine loans
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...