
James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Author: James F. McDonough
Date: November 14, 2016
Of Counsel
732-568-8360 jmcdonough@sh-law.comAccording to a Politico report, the focus of the debate has been over the legality of Trump’s tax-minimizing strategies since 1995.
In a recent story published in the New York Times, selected sections of Trump’s tax returns in 1995 showed he registered a $916 million loss that year. As a result, this would enable him to avoid any payment of personal income taxes on his returns for up to 18 years.
Critics of the strategy have been vocal because many see this as a potential deciding factor for independent voters. Politico reported that while supporters approved of the strategy, detractors point to the massive loss as proof that either Trump’s business ventures have not been as successful as he reported, or that he has hidden assets and did not pay an adequate share of individual income taxes.
Furthermore, critics have been outspoken about the fact that by Trump not publicly releasing his financial records, he is withholding the identity of debtors and creditors who could have influence over his campaign. This could leave the door open to special interest groups guiding some of Trump’s policies as president. Ultimately, this could tarnish his position as a self-made business success to his voter base.
Those in favor of Trump’s tax avoidance strategy point to his prowess as a businessman. They also assert that the manner in which he has minimized his individual tax return is well within the legal application of the IRS tax codes.
Supporters have additionally been on record to state that his individual tax returns should be withheld because he is not a public official. In fact, former New York City mayor Rudy Giuliani argued recently that not releasing these records is part of a fiduciary obligation:
“You are ignoring completely the fiduciary obligation that he has to all the people around him to run his business at the lowest possible expense,” Giuliani explained.
Whether Trump’s strategy is part of a fiduciary duty to his shareholders is still up for debate. However, it remains to be seen if him taking the loss on his individual income tax returns is part of this fiduciary obligation. The impact of this revelation could be significant come election day for those both in favor and against the tax minimization strategy.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]
Author: Brian D. Spector
In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]
Author: Kenneth C. Oh
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
Author: Matthew F. Mimnaugh
If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]
Author: Jesse M. Dimitro
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!