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Donald Trump audited for double-dipping tax breaks at Chicago’s Trump Tower: report

Former President Donald Trump could be hit with a bill of more than $100 million for claiming inappropriate tax breaks on his namesake tower along the Chicago River, according to a report jointly published Saturday by ProPublica and the New York Times.

In a years-long audit battle, the Internal Revenue Service has argued that Trump effectively wrote off the same massive losses twice at the Trump International Hotel and Tower at 401 N. Wabash Ave., ProPublica and the Times found.

Trump reported losses of $651 million on the River North tower in 2008, when he claimed the 92-story building met the tax code definition of “worthless” shortly before its completion during the heart of the Great Recession, they found. the media.

Then in 2010, Trump changed the company that owned the tower to a new partnership, a move he cited to justify $168 million in additional losses over the next 10 years, ProPublica and the Times reported, citing filings in a lawsuit against Trump. , a Congressional report and an IRS memo.

The current status of the IRS audit of Trump and his Chicago businesses is unclear. The agency could seek to recover more than $100 million, plus interest and possible penalties, media outlets estimated.

The presumptive Republican presidential nominee’s son, Eric Trump, executive vice president of the Trump Organization, told the publications: “This matter was resolved years ago, only to come back to life once my father ran for office. “We are confident in our position, which is supported by opinion letters from several tax experts, including the former IRS general counsel.”

An IRS spokesperson declined to comment, citing federal privacy law.

Donald Trump holds the October 28, 2004 edition of the Chicago Sun-Times as he crosses the Wabash Avenue Bridge toward the newspaper's former building, which was demolished that year to make way for the Trump International Hotel and Tower.

Donald Trump holds the October 28, 2004 edition of the Chicago Sun-Times as he crosses the Wabash Avenue Bridge toward the newspaper’s former building, which was demolished that year to make way for the Trump International Hotel and Tower.

Keith Hale/Sun-Times Archive

The tower site was long the headquarters of the Chicago Sun-Times before Donald Trump purchased it in 2001 with grand visions of building the world’s tallest building, a plan he scrapped after the 9/11 attacks.

Last year, an Illinois appeals court ruled that Trump Tower had been overvalued by the Cook County Assessor’s Office and Board of Review in 2011, leading to a $1 million property tax refund for The ex-president.

Trump originally hired the veteran Southwest Side councilman. Ed Burke (14th) as his attorney to handle property tax appeals at the tower.

Burke is scheduled to be sentenced this summer on unrelated federal convictions for racketeering, bribery and attempted racketeering.