I work in the tax industry. The tax returns of trump are basically the same thing as every other big time real estate investor. The whole strategy is to not make money on the rent (of course, it is a plus if you do) but rather to simply use leverage to acquire real estate and then build equity in the properties as your tenants pay off the mortgage. You make your money on equity and real estate appreciation rather than actual rental income. This is why a wealthy real estate investor can pay "no taxes".
The debate over trump's returns only goes on to show that the left is basically clueless about taxes.
I am no tax expert, but I work on the legal side in real estate, and from what I know, once you do decide to sell the asset, you still almost always use a 1031 tax free, like kind exchange to avoid the capital gains hit and maintain the original basis. There are much more sophisticated tricks to ultimately dodge that big eventual hit but that veers into estate planning (Family trust, Family limited partnerships, conveying to younger generations but taking back a note and lien so they essentially buy it from the family but it is still ultimately their inheritance that they are paying into, etc.) and is more out of my wheelhouse. But these are standard tactics that we address in every single purchase and sale agreement we negotiate. This NYT hit piece can only effect the clueless and most likely led to aggressive eye rolling from several democrats who are involved in real estate, but I am assured they do not have enough shame to complain about fake news that could hurt Trump.
I work in the tax industry. The tax returns of trump are basically the same thing as every other big time real estate investor. The whole strategy is to not make money on the rent (of course, it is a plus if you do) but rather to simply use leverage to acquire real estate and then build equity in the properties as your tenants pay off the mortgage. You make your money on equity and real estate appreciation rather than actual rental income. This is why a wealthy real estate investor can pay "no taxes".
The debate over trump's returns only goes on to show that the left is basically clueless about taxes.
I am no tax expert, but I work on the legal side in real estate, and from what I know, once you do decide to sell the asset, you still almost always use a 1031 tax free, like kind exchange to avoid the capital gains hit and maintain the original basis. There are much more sophisticated tricks to ultimately dodge that big eventual hit but that veers into estate planning (Family trust, Family limited partnerships, conveying to younger generations but taking back a note and lien so they essentially buy it from the family but it is still ultimately their inheritance that they are paying into, etc.) and is more out of my wheelhouse. But these are standard tactics that we address in every single purchase and sale agreement we negotiate. This NYT hit piece can only effect the clueless and most likely led to aggressive eye rolling from several democrats who are involved in real estate, but I am assured they do not have enough shame to complain about fake news that could hurt Trump.