Former President Trump facing potential tax bill of over $100 million following IRS audit of Chicago tower
IRS argues Trump effectively wrote off same losses from Chicago project twice
IRS audit status unclear, could seek to recoup over $100 million plus interest and penalties if successful
Trump reported losses as high as $651 million in 2008 due to economic downturn and debt on project
Former President Donald Trump is facing a potential tax bill of over $100 million following an Internal Revenue Service (IRS) audit of his Chicago tower. The IRS has argued that Trump effectively wrote off the same losses from the Chicago project twice, leading to this significant financial consequence. In 2008, Trump reported losses as high as $651 million for the year due to claiming worthlessness of his investment in the condo-hotel tower during a time when sales were lagging and debt on the project was substantial. In 2010, Trump shifted ownership of the Chicago tower into a new partnership and claimed additional losses over the next decade. The IRS audit battle status is unclear, but it could seek to recoup more than $100 million plus interest and penalties if successful.
The Trump International Hotel and Tower in Chicago opened during the Great Recession, which was a significant financial downturn that affected many industries. Despite being the tallest building in Chicago at the time, it faced cost overruns and struggled to attract buyers due to economic conditions. The tower's troubled history has led to this extensive audit by the IRS.
Trump originally sought tax benefits from his losses on the Chicago tower, but the IRS argues that he went too far and effectively wrote off the same losses twice. This accounting maneuver is now under scrutiny, and if found to be improper, could result in a substantial tax bill for Trump.
The IRS audit of Trump's Chicago tower is just one aspect of his complex financial dealings that have been subject to intense public interest and scrutiny. The outcome of this audit will likely add to the ongoing debate surrounding the former president's business practices and financial situation.
The I.R.S believes former President Donald J. Trump violated a law meant to prevent double-dipping on tax-reducing losses.
Former President Donald J. Trump used a dubious accounting maneuver to claim improper tax breaks from his troubled Chicago tower.
Trump reported $651 million in losses on the River North tower in 2008.
In 2010, Trump shifted the company that owned the tower into a new partnership and used this shift to declare additional losses over the next decade.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article makes editorializing statements and uses sensationalism by implying that former President Trump may owe over $100 million in taxes due to 'dubious accounting maneuvers'. The authors also use selective reporting by only mentioning the potential tax liability without providing any context or evidence of wrongdoing beyond the IRS' belief.
The I.R.S. believes that former President Donald J. Trump violated a law meant to prevent double-dipping on tax-reducing losses.
The revision sought by the I.R.S. would create a new tax bill of more than $100 million, plus interest and potential penalties.
But when Mr. Trump sought to reap tax benefits from his losses, the I.R.S. has argued, he went too far and in effect wrote off the same losses twice.
Fallacies
(95%)
The article contains an instance of a circular argument in the description of Trump's tax maneuver. The IRS argues that Trump double-dipped on tax-reducing losses by claiming worthlessness twice on the same investment. However, the justification for this second claim was based on the initial determination that his investment was worthless, creating a circular reasoning.
> Former President Donald J. Trump used a dubious accounting maneuver to claim improper tax breaks from his troubled Chicago tower, according to an Internal Revenue Service inquiry uncovered by The New York Times and ProPublica. Losing a yearslong audit battle over the claim could mean a tax bill of more than $100 million.
, The I.R.S. believes that former President Donald J. Trump violated a law meant to prevent double-dipping on tax-reducing losses.
The first write-off came on Mr. Trump’s tax return for 2008... With sales lagging far behind projections, he claimed that his investment in the condo-hotel tower met the tax code definition of ‘worthless,’ because his debt on the project meant he would never see a profit.
The revision sought by the I.R.S. would create a new tax bill of more than $100 million, plus interest and potential penalties.
Former President Donald Trump could be hit with a bill of over $100 million for claiming improper tax breaks on his namesake tower along the Chicago River
IRS has argued Trump effectively wrote off the same massive losses twice on the Trump International Hotel and Tower at 401 N. Wabash Ave.
Trump reported $651 million in losses on the River North tower in 2008
In 2010, Trump shifted the company that owned the tower into a new partnership, justifying $168 million in additional losses over the next 10 years
IRS audit battle status is unclear, could seek to recoup more than $100 million plus interest and penalties
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains inflammatory rhetoric and appeals to authority. It also uses a dichotomous depiction of the subject.
. . . the Internal Revenue Service has argued Trump effectively wrote off the same massive losses twice on the Trump International Hotel and Tower at 401 N. Wabash Ave., ProPublica and the Times found.
The current status of the IRS’s audit of Trump and his Chicago dealings is unclear. The agency could seek to recoup more than $100 million, plus interest and potential penalties, the news outlets calculated.
An IRS spokesperson declined to comment, citing federal privacy law.
Former President Donald Trump could face a $100 million tax bill after the IRS said he twice sought to write off the same losses on his struggling 92-story Chicago skyscraper.
Trump's first tax write-off for the Chicago tower came in his 2008 tax return, when sales at the building faltered below expectations. He claimed that his share of investment in the structure amounted to what the tax code classified as 'worthless' because of debt on the project, resulting in reported losses as high as $651 million for the year.
Accuracy
Trump reported $651 million in losses on the River North tower in 2008
In 2010, Trump shifted the company that owned the tower into a new partnership and used this shift to declare additional losses over the next decade.
Deception
(70%)
The article reports on an IRS investigation into former President Trump's tax filings regarding the Trump International Hotel and Tower in Chicago. The author states that Trump tried to write off the same losses twice, which is a form of selective reporting as it only reports details that support the author's position. Additionally, there is emotional manipulation through phrases like 'struggling 92-story Chicago skyscraper' and 'vast condo-hotel project was saddled with cost overruns'. The article also implies facts without linking to peer-reviewed studies or retracted studies, such as the statement that 'Trump lost up to $651 million on the project'.
The Trump International Hotel and Tower Chicago, built on the site of the former Chicago Sun-Times headquarters, opened during the Great Recession in 2009. The vast condo-hotel project was saddled with cost overruns, according to the report.
Trump tried to claim tax benefits from financial losses associated with the project and that he practically wrote off those losses twice.
Fallacies
(85%)
None Found At Time Of
Publication
Bias
(95%)
The author does not demonstrate any clear bias in the article. However, there is a disproportionate number of quotes and mentions of financial losses related to Trump's Chicago skyscraper, which could potentially skew the reader's perception towards viewing Trump negatively. The author also uses language that depicts Trump as having attempted to write off losses twice and obtained additional benefits from the project, which could be perceived as critical.
The revision pursued by the IRS would give Trump an updated tax bill exceeding $100 million, excluding any additional penalties
Trump could face a $100 million tax bill after the IRS said he twice sought to write off the same losses on his struggling 92-story Chicago skyscraper
Former President Donald Trump faces a potential tax bill of over $100 million following an IRS audit of his Chicago tower.
IRS argues that Trump claimed improper tax breaks by writing off losses from the Chicago project twice.
Trump reported losses as high as $651 million for the year 2008 due to claiming worthlessness of the investment in the condo-hotel tower.
In 2010, Trump shifted ownership of the Chicago tower into a new partnership and claimed additional losses over the next decade.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains an appeal to authority and a potential false authority fallacy. The authors cite unnamed tax experts as a source of information without providing specifics or evidence for their claims. Additionally, the article uses inflammatory rhetoric by describing the IRS's lack of initial challenge to Trump's initial claim as surprising to consulted tax experts.
. . . there is no indication the IRS challenged that initial claim, though that lack of scrutiny surprised tax experts consulted for this article.
ProPublica and the Times, in consultation with tax experts, calculated that the revision sought by the IRS would create a...
Former President Donald Trump may owe $100 million in taxes for claiming improper tax breaks on his Chicago tower.
The Internal Revenue Service found that Trump wrote off the same losses from his Chicago tower twice, potentially resulting in a tax bill.
Accuracy
The IRS believes former President Donald J. Trump violated a law meant to prevent double-dipping on tax-reducing losses.
Trump reported $651 million in losses on the River North tower in 2008
In 2010, Trump shifted the company that owned the tower into a new partnership and used this shift to declare additional losses over the next decade.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
Dichotomous Depiction and Appeal to Authority
> Former President Donald Trump allegedly used a dubious accounting move to claim improper tax breaks from his Chicago tower, according to a report from and .
The publications say an Internal Revenue Service inquiry found that Trump may be on the hook for a $100 million tax bill.
