Post by Sysop3 on May 7, 2019 20:25:50 GMT -5
The year was 1985, and Mr. Trump appeared to be on top of the world.
He was still riding high from the completion of his first few projects — the Grand Hyatt Hotel, Trump Tower and another Manhattan apartment building, and one Atlantic City casino. He also owned the New Jersey Generals of the United States Football League.
As the year played out, he borrowed hundreds of millions of dollars to fuel a wave of purchases, acquiring a second casino ($351.8 million), a Manhattan hotel ($80 million), the Mar-a-Lago property in Florida ($10 million), a New York hospital he intended to replace with an apartment building ($60 million) and an undeveloped expanse of railroad yards on the West Side of Manhattan ($85 million), where he planned to construct an entire neighborhood, including a 150-story tower envisioned as the world’s tallest.
For the first time, Forbes’s ranking of the wealthiest Americans listed Mr. Trump individually, independent of his father — with an estimated net worth of $600 million that included the real estate empire Fred Trump still owned.
“What I have done is build the most beautiful buildings in the best locations,” Donald Trump told the magazine.
But what the newly revealed tax information makes clear is that, with his vast debt and other expenses on those properties, Mr. Trump’s fortunes were already on the way down.
His yearly carrying costs on the rail yards would rise to $18.7 million. He would not be able to convert Mar-a-Lago into a moneymaking club for another decade. The apartments on the hospital site would not be ready for sale, as Trump Palace, until 1990, and another residential project would be stalled for years. The football league would soon fold.
Because his businesses were generally created as partnerships, the companies themselves did not pay federal income taxes. Instead their results wound up on Mr. Trump’s personal ledger.
Beyond the $46.1 million loss that his core businesses logged in 1985, Mr. Trump’s tax information shows that he carried over $5.6 million in losses from prior years. The I.R.S. data on one-third of high-income tax returns that year lists only three taxpayers with greater losses.
In his letter, Mr. Harder, the president’s lawyer, took issue with comparing the tax returns of “a real estate developer to the returns of all taxpayers.” But most of the high-income taxpayers appeared, like Mr. Trump, to be business owners who received what is known as pass-through income. (That data does not include businesses, like most large corporations, that pay their taxes directly.)
The next years were a time of continued empire building. The information also documents, year by year, a time of gathering loss. Here is how it added up.
In 1986, he bought out his partners in Trump Tower and the Trump Plaza Hotel and Casino. He bought an apartment building in West Palm Beach for $43 million. His business losses for the year: $68.7 million.
A Deal Maker in Financial Distress
Every year from 1985 through 1994, Donald J. Trump reported a negative adjusted gross income on his tax returns. That number grew as new losses were combined with those from prior years. The New York Times previously found that Mr. Trump declared an adjusted gross income in 1995 of negative $915.7 million.