Donald Trump could owe up to $100 million in taxes after an IRS audit found he may have improperly claimed tax deductions on losses from his Chicago skyscraper, according to reports from The New York Times and ProPublica.
The audit centres on the 92-story Trump International Hotel and Tower in Chicago, which opened over budget and during the 2008 recession. Trump initially claimed a loss of $651 million in 2008, declaring the property 'worthless' for tax purposes. However, experts allege he then transferred the tower's ownership into a new partnership in 2010, allowing him to claim an additional $168 million in losses over the following decade.
Walter Schwidetzky, a law professor at the University of Baltimore, told the Times: 'I think he ripped off the tax system.' The IRS issued a memo in 2022 outlining its view that the 2010 merger violated rules against 'double dipping' on tax-reducing losses. Trump was not named in the memo, but the Times identified him using details from a separate lawsuit by New York Attorney General Letitia James.
Eric Trump, executive vice president of the Trump Organization, said the matter has been resolved and expressed confidence in the company's position. The audit was referenced in a December 2022 congressional report, but further details remain confidential unless Trump challenges the findings in court.
