CHICOPEE, Mass. (WWLP) – Donald Trump has admitted, he’s avoided paying taxes. 22News found out how, and if it’s legal.
The answer is yes, it’s legal. New records show Trump didn’t pay taxes for nearly two decades. 22News explains how, and has reaction from residents.
Donald Trump had 916 million dollars in losses from his casinos, a hotel and other failed business ventures in the early 1990s. In 1995 Trump declared this as a loss on his tax return. Because of real estate tax law he gets to put this against his taxes that he owes. The net effect is that it took about 18 years before he started owing taxes again.
Paul Mancinone, a Tax Attorney told 22News, “That’s how net operating losses work, if you have a loss in one year you can use it to offset future losses until that loss is utilized in full, so as far as the tax code, at the end of the day he recouped all the losses in the eyes of the internal revenue services.”
While this is legal many people see it as unfair.
“He exposed what the problem is with the taxes” said Joseph Bonafilia, of West Springfield.
“It’s kind of interesting that it is legal, the problem I have with it is the amount of people that think he’s very smart for doing that, it seems very un-American to me.”
Yet other Western Massachusetts residents told 22News Trump’s tax returns have no impact on how they will vote come November.
“It doesn’t really affect how I feel about the candidate” said Nathan Shen, of Springfield.
And many people don’t understand how they can save money when it comes to their personal taxes.
“I know there’s deductibles on your house and gas and mileage but I don’t really know how to work that.”
Tax experts say people can deduct charitable contributions, mortgage interest and interest in student loans.