Former President Donald Trump could be facing a hefty tax bill of over $100 million due to a lengthy IRS investigation into his claims of massive losses on his Chicago skyscraper, according to reports from The New York Times and ProPublica.
The investigation centers around Trump’s assertions of significant financial losses on the property, first in 2008 when he declared the building as “worthless” and again after 2010 when he transferred ownership into a new partnership controlled by himself. These maneuvers allowed Trump to report losses totaling as high as $651 million in 2008 and an additional $168 million over the next decade, all stemming from the Chicago tower.
The IRS inquiry was triggered by the shifting of other Trump businesses, such as golf courses, into the same partnership, “DJT Holdings LLC,” which was used to claim further tax-reducing losses from the Chicago property. The potential tax liability resulting from the IRS’s proposed revision could exceed $100 million, as per calculations by the news outlets.
While Trump’s son, Eric Trump, maintains that the matter was resolved years ago and resurfaced only after his father’s political career began, the IRS audit into the Chicago tower’s loss claims is reportedly ongoing. The audit was briefly mentioned in a congressional report from December 2022, hinting at a potential legal battle ahead for the former president.
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