Trump earned $67M in real estate royalties in ’05

Leaked tax return shows $150M income

TRD MIAMI /
Mar.March 15, 2017 01:30 PM

From the New York website: President Donald Trump paid $38 million in taxes on a reported income of $150 million in 2005, according to leaked tax returns shown Tuesday night on MSNBC’s Rachel Maddow Show. That translates to an effective rate of 25 percent.

The document not only offers a window into Trump’s wealth, but also shows how Trump’s tax reform plans could benefit him financially. Trump paid a 25 percent rate in 2005 because that’s the so-called alternative minimum tax rate, which ensures billionaires like Trump don’t use deductions to avoid paying taxes altogether. If it weren’t for the minimum, he would have paid a mere $7 million because he wrote off $100 million in losses, according to the New York Times. Trump has said he wants to abolish the alternative minimum tax.

“Trump’s return shows that he’s pushing tax changes that benefit multimillionaire heirs like him, not the middle class,” NYU tax law professor Lily Batchelder told the Times. “His proposal to repeal the A.M.T. would have slashed his own tax burden by $31 million, and his income tax rate would be lower than the average rate paid by families earning $75,000 to $100,000.”

According to the return, Trump earned $67 million in real estate royalties and $42 million in other business income. He also reported $32 million in capital gains, $9 million in taxable interest and $998,599.

The White House slammed MSNBC for releasing the report, saying they were “desperate for ratings.” Trump’s son, Donald Trump Jr. wrote on Twitter that the leak only proved his father’s business savvy. “Thank you Rachel Maddow for proving to your #Trump hating followers how successful @realdonaldtrump is & that he paid $40mm in taxes!” he said.

Trump famously broke with tradition by refusing to release his tax returns prior to the 2016 presidential elections. His critics have long obsessed over the possibility that they could include damaging information.

Last year, the Times published Trump’s 1995 tax return, which showed a $916 million loss. The loss was large enough to allow him to avoid paying millions in taxes for a number of years. [NYT]Konrad Putzier


Related Articles

arrow_forward_ios
Donald Trump and the Trump National Doral golf course (Getty, Trump Hotels)

In the rough: Trump’s golf clubs and resorts have lost $315M

In the rough: Trump’s golf clubs and resorts have lost $315M
Donald Trump (Credit: Win McNamee/Getty Images)

Newly uncovered trademarks show Trump’s Cuba real estate aspirations

Newly uncovered trademarks show Trump’s Cuba real estate aspirations
212 Spyglass Lane & Carlos Gavidia (Realtor, Instagram/Carlos_E_Gavidia)

“Trumptilla” organizer sells waterfront Jupiter home for $6M

“Trumptilla” organizer sells waterfront Jupiter home for $6M
President Trump and Mar-a-Lago Club (Credit: Joe Raedle/Getty Images, and Pete Marovich/Getty Images)

Trump faces $1.5M in Palm Beach County property taxes

Trump faces $1.5M in Palm Beach County property taxes
Donald Trump with Trump International Golf Club (Credit: Isaac Brekken/Getty Images and Palm Beach Post)

Trump golf club in West Palm seeks rent relief, citing shutdowns

Trump golf club in West Palm seeks rent relief, citing shutdowns
Donald Trump and Mar-a-Lago Club (Credit: MANDEL NGAN/AFP via Getty Images, and iStock)

Trump’s Mar-a-Lago furloughs 153 employees

Trump’s Mar-a-Lago furloughs 153 employees
Donald Trump, Vanilla Ice and Briny Breezes (Credit: Getty Images)

Trump Town? Briny Breezes wants to sell for $1B

Trump Town? Briny Breezes wants to sell for $1B
Daily Digest Miami

Missoni Baia lands massive loan, Babylon Brickell owner sells Overtown property: Daily digest

Missoni Baia lands massive loan, Babylon Brickell owner sells Overtown property: Daily digest
arrow_forward_ios

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

Loading...