The bombshell revelation of Trump’s financial records, leaked to The New York Times and published on Sunday night, may have lasting consequences for some time to come. One of the more surprising consequences that may come from those tax documents is an investigation into Trump’s oldest daughter, Ivanka Trump, and money she received from her father.
Exclusive: The Times has obtained tax-return data for President Trump extending over more than two decades.
It shows his finances under stress, beset by losses that he aggressively employs to avoid paying taxes and hundreds of millions in debt coming due. https://t.co/gstfYLEe5V
— The New York Times (@nytimes) September 27, 2020
When anyone gifts money to another person, a gift tax must be paid to the IRS. To avoid having any gift taxes due to Ivanka, Trump wrote off the funds as consulting fees for his business. This also allowed Trump to write off money paid to one of his children as a business expense, a write-off that will most likely interest the southern district of New York, who is currently investigating whether there is a case to bring against the president for tax fraud.
According to The New York Times:
‘Mr. Trump reduced his taxable income by treating a family member as a consultant, and then deducting the fee as a cost of doing business.
‘The “consultants” are not identified in the tax records. But evidence of this arrangement was gleaned by comparing the confidential tax records to the financial disclosures Ivanka Trump filed when she joined the White House staff in 2017. Ms. Trump reported receiving payments from a consulting company she co-owned, totaling $747,622, that exactly matched consulting fees claimed as tax deductions by the Trump Organization for hotel projects in Vancouver and Hawaii.’
— Democratic Coalition (@TheDemCoalition) September 28, 2020
Business expenses, according to guidelines set out by the Internal Revenue Service, say that business expenses must be both reasonable and necessary. It is yet to be determined whether or not the IRS will consider nearly 100,000 dollars paid to hair and makeup stylists for Ivanka as a “reasonable” expense.
‘Mr. Trump has written off as business expenses costs — including fuel and meals — associated with his aircraft, used to shuttle him among his various homes and properties. Likewise the cost of haircuts, including the more than $70,000 paid to style his hair during “The Apprentice.” Together, nine Trump entities have written off at least $95,464 paid to a favorite hair and makeup artist of Ivanka Trump.’
— CNN Politics (@CNNPolitics) September 28, 2020
Although she’s being paid as a “consultant,” Ivanka Trump has never billed herself as one for the Trump Organization. Instead, she’s openly claimed to be a top executive, involved in all decisions related to the business. The consulting company run by Ivanka and paid by the Trump Organization will need to be evaluated as to whether the vast sum of money it was paid is “reasonable” or “necessary,” as well.
‘On Ms. Trump’s now-defunct website, which explains her role at the Trump Organization, she was not identified as a consultant. Rather, she has been described as a senior executive who “actively participates in all aspects of both Trump and Trump branded projects, including deal evaluation, predevelopment planning, financing, design, construction, sales and marketing, and ensuring that Trump’s world-renowned physical and operational standards are met.
‘“She is involved in all decisions — large and small.”’
The write off for Ivanka’s stylist was more money than most Americans make in a year.
— Ben Rhodes (@brhodes) September 28, 2020