Trump "Deep Throat" Emerges: Someone Leaks Donald's '95 Tax Filing To The NYT

Tyler Durden's picture

For months democrats had complained that it was only damaging information associated with Hillary and the Democratic party that had been leaked during the election season, a string of hacks which was promptly assigned to Russia and Putin. That changed overnight.

In its leading Sunday story, the New York Times reports that "Trump Tax Records Obtained by The Times Reveal He Could Have Avoided Paying Taxes for Nearly Two Decades." Specifically, it reports that according to a previously undisclosed 1995 tax filing, Trump reported a $916 million loss on his income tax returns that year which could have allowed him to legally avoid paying any federal income tax for up to 18 years. As it explains, "the 1995 tax records, never before disclosed, reveal the extraordinary tax benefits that Mr. Trump, the Republican presidential nominee, derived from the financial wreckage he left behind in the early 1990s through mismanagement of three Atlantic City casinos, his ill-fated foray into the airline business and his ill-timed purchase of the Plaza Hotel in Manhattan."

To be sure, since Trump has never released his tax returns, it's still unclear if he paid federal income tax in subsequent years.  At Monday’s presidential debate when Hillary Clinton accused him of not paying federal income taxes, he replied, “That makes me smart.”

As the NYT further details, in the early 1990s, Trump's real estate projects and other businesses were quickly losing money, New Jersey casino regulator records and other documents have shown, which has been known for years as was the fact that Trump faced near-ruin in the mid-90s.  The Times said that Trump reported earning $7.4 million in interest income for the year but just over $6,000 in wages, salaries and tips.

“He has a vast benefit from his destruction” in the early 1990s, said one of the experts, Joel Rosenfeld, an assistant professor at New York University’s Schack Institute of Real Estate. Mr. Rosenfeld offered this description of what he would advise a client who came to him with a tax return like Mr. Trump’s: “Do you realize you can create $916 million in income without paying a nickel in taxes?”

Of course, the NYT discovery in itself is hardly as exciting as it makes it out to be: all the paper has found is that Trump established a substantial Net Operating Loss, or NOL, which courtesy of the US tax code, could be carried forward for years.

Reports by New Jersey’s casino regulators strongly suggested that Mr. Trump had claimed large net operating losses on his taxes in the early 1990s. Their reports, for example, revealed that Mr. Trump had carried forward net operating losses in both 1991 and 1993. What’s more, the reports said the losses he claimed were large enough to virtually cancel out any taxes he might owe on the millions of dollars of debt that was being forgiven by his creditors. (The I.R.S. considers forgiven debt to be taxable income.)

Indeed, as the NYT itself admits there was nothing illegal about using such a manoeuvre: the world's rich take advantage of NOL tax planning all the time, and in fact acquiring corporations for their NOL benefit has long been a strategy in corporate America designed to minimize Federal and State tax outflows.

The tax experts consulted by The Times said nothing in the 1995 documents suggested any wrongdoing by Mr. Trump, even if the extraordinary size of the loss he declared would have probably attracted extra scrutiny from I.R.S. examiners. “The I.R.S., when they see a negative $916 million, that has to pop out,” Mr. Rosenfeld said.

Considering that according to Trump he has been the subject of numerous tax audits by the IRS that appears to be indeed the case.

Furthermore, the NYT itself is perfectly happy to take advantage of the US tax to minimize the amount of money it pays to the government: in 2014 the company got a tax refund of $3.6 million despite having a $29.9 million pretax profit, an effective negative tax rate for 2014, which it explained was favorably affected by approximately $21.1 million for the reversal of reserves for uncertain tax positions due to the lapse of applicable statutes of limitations. 

* * *

However, the biggest news in the NYT report is not so much the glimpse into Trump's income statement over 20 years ago, but the fact that unexpectedly a Deep Throad appears to have emerged within Trump's organization, someone found directly inside the Trump Tower. This is how the NYT explains where it got the questionably obtained filings:

The documents consisted of three pages from what appeared to be Mr. Trump’s 1995 tax returns. The pages were mailed last month to Susanne Craig, a reporter at The Times who has written about Mr. Trump’s finances. The documents were the first page of a New York State resident income tax return, the first page of a New Jersey nonresident tax return and the first page of a Connecticut nonresident tax return. Each page bore the names and Social Security numbers of Mr. Trump and Marla Maples, his wife at the time. Only the New Jersey form had what appeared to be their signatures.

 

The three documents arrived by mail at The Times with a postmark indicating they had been sent from New York City. The return address claimed the envelope had been sent from Trump Tower.

Missing, however, was Trump's comprehensive Federal tax return: "because the documents sent to The Times did not include any pages from Mr. Trump’s 1995 federal tax return, it is impossible to determine how much he may have donated to charity that year. The state documents do show, though, that Mr. Trump declined the opportunity to contribute to the New Jersey Vietnam Veterans’ Memorial Fund, the New Jersey Wildlife Conservation Fund or the Children’s Trust Fund. He also declined to contribute $1 toward public financing of New Jersey’s elections for governor."

Understandably, the Trump campaign was troubled by the leak: as the NYT notes, a lawyer for Mr. Trump, Marc E. Kasowitz, emailed a letter to The Times arguing that publication of the records is illegal because Mr. Trump has not authorized the disclosure of any of his tax returns. Mr. Kasowitz threatened “prompt initiation of appropriate legal action.” Incidentally, Kasowitz is also somewhat well known in the investing community for threatening to sue outspoken critics of problematic stock narratives, having threatened with lawsuits investors and journalists divulging negative information involving such Canadian firms as Fairfax, Valeant and Brookfield.

It remains to be seen if legal action against the NYT will indeed be taken. The Trump campaign promptly responded to what it alleges was "illegally obtained" information as follows:

"The only news here is that the more than 20-year-old alleged tax document was illegally obtained, a further demonstration that the New York Times, like establishment media in general, is an extension of the Clinton Campaign, the Democratic Party and their global special interests. What is happening now with the FBI and DOJ on Hillary Clinton's emails and illegal server, including her many lies and her lies to Congress are worse than what took place in the administration of Richard Nixon - and far more illegal.

"Mr. Trump is a highly-skilled businessman who has a fiduciary responsibility to his business, his family and his employees to pay no more tax than legally required. That being said, Mr. Trump has paid hundreds of millions of dollars in property taxes, sales and excise taxes, real estate taxes, city taxes, state taxes, employee taxes and federal taxes, along with very substantial charitable contributions. Mr. Trump knows the tax code far better than anyone who has ever run for President and he is the only one that knows how to fix it.

"The incredible skills Mr. Trump has shown in building his business are the skills we need to rebuild this country. Hillary Clinton is a corrupt public official who violated federal law, Donald Trump is an extraordinarily successful private businessman who followed the law and created tens of thousands of jobs for Americans."

As expected, CNN was displeased with this characterization:

However, while the story of Trump's use of NOLs may be overblown, the big news of the day is that a deeply-embedded, and well-connected mole appears to have emerged within Trump's organization, someone close enough to have access to Trump's tax filings, albeit at least for now, going back more than 20 years in time.

As such suddenly the odds that the "October Surprise" will be a leak not so much of additional Hillary hacked data, but of adverse infromation impacting the Trump campaign has surged. That said, we doubt if the media will blame the Kremlin for this particular leak, as it has done all along whenever Hillary's own dirty laundry was released into the open.

The three leaked state tax filing pages are shown below:

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nmewn's picture

"Please don't impeach me!" - IRS Commissioner John Koskinen

kliguy38's picture

This is HORRIBLE.......he took a legal tax deduction....... bring back the electric chair

billwilson2's picture

Release the returns! Let's see the real story.

The man is a crook, a liar, a charlatan, a loser, and not very nice either.

random999's picture

and this my dear friends, is why lowering the taxes wont benefit the large corporations and globalists as claimed, but the opposit. It will actually make big corporations the option to start paying taxes in USA while the small guys will benefit a lot!

MANvsMACHINE's picture

If I had to make a bet, I'd put my money on DT sanctioning this "leak."

Latina Lover's picture

When the DNC emails were made public, it was a hack by Putin. 

When DJT's 1995 tax return is released, it is a leak. 

This is Left-think at its most obvious.

 

I am really enjoying the NYT destroying their ill deserved reputation as a so called paper of record.

PT's picture

"Toilet Paper of Record" - Gerald Celente

Chris Dakota's picture
Chris Dakota (not verified) PT Oct 2, 2016 9:42 AM

Julian Assage said he has the proof that Hillary sold weapons to ISIS.

1700 emails to this topic which connect the foundation to the arms sales to ISIS in Syria.

Although Hillary Clinton has repeatedly denied that she sold weapons to the Islamic Stats while serving as Secretary of State, Wikileaks founder Julian Assange claims he has proof to the contrary.

Read more at: http://dailytimes.ng/wikileaks-confirms-hillary-sold-arms-isis/ Although Hillary Clinton has repeatedly denied that she sold weapons to the Islamic Stats while serving as Secretary of State, Wikileaks founder Julian Assange claims he has proof to the contrary.

Read more at: http://dailytimes.ng/wikileaks-confirms-hillary-sold-arms-isis/
Although Hillary Clinton has repeatedly denied that she sold weapons to the Islamic Stats while serving as Secretary of State, Wikileaks founder Julian Assange claims he has proof to the contrary.

Read more at: http://dailytimes.ng/wikileaks-confirms-hillary-sold-arms-isis/

http://dailytimes.ng/wikileaks-confirms-hillary-sold-arms-isis/

tmosley's picture

Trump leaked this himself, and liberal morons fell for it. Hook, line, and sinker.

Might even come out of it with a newspaper to call his very own.

 

Escrava Isaura's picture

First, we would have to find out the veracity of this leak; but, let’s assume that it’s accurate.

So, that tells you that the US tax system is a big give away to the wealthiest Americans, if one’s bother to look at it.

Second, obviously that Trump is running a major “Tax Ponzi” scheme.

Third, running a tax scheme fits the conservative agenda, so go Trump in making America “Trump” great again.

 

Arnold's picture

Wow, you file 1040 EZ don't you?

Escrava Isaura's picture

Yea, every year.

Richard Head's picture

Too stupid to even know he's being insulted.

Theosebes Goodfellow's picture

I need to pay more attention. When did the Grey Lady turn into a skank whore? Stay classy, bitch.

jcaz's picture

Yep- Escarva is a special kind of stupid,  it's really amusing to watch most days.  Combined with a complete lack of self-awareness, it's no wonder he identifies with Hillary.....

Mr. Universe's picture

No realization of what is really happening other than the MSM spoon fed pablum. I had thought it amusing at first, but after a while it's just sad.

J_Peterman's picture

Best one liner of the day !!!   +1000

J_Peterman's picture

Best one liner of the day !!!   +1000

scm's picture

It's ok if thump a typical establishment scumbag because he's going to save me from Hillary.

/acting like a typical asshole thump supporter.

Arnold's picture

Naw, what else you got?

scm's picture

THump supporters are a bunch of racists and sexist. They are violent and hate freedom.
What else would you like to know.

tmosley's picture

I seem to recall that you decided that you hate all Americans. Why don't you fuck off out of our country?

scm's picture

People that vote for things that go against what this free country once stood for should FUCK OFF.

nmewn's picture

"So, that tells you that the US tax system is a big give away to the wealthiest Americans, if one’s bother to look at it."

So I guess by extension of that logic, Hillary becoming a MULTI-MILLIONAIRE while in the "employ" of .gov is a-ok then?

Escrava Isaura's picture

Clinton’s taxes are public domain. Anyone can see them.

Clinton’s paid about 40% in taxes.

 

https://www.hillaryclinton.com/page/tax-returns/

 

booboo's picture

40% of what? Ah, and there in lies the...lie

CuttingEdge's picture

The Clinton Crime Foundation, maybe?

If Trump does make it to January I sure as hell hope:

a) Comey gets an ass-reaming (only way to restore any cred to the Feebs), and

b) The Clinton Foundation gets IRS crawling in and out of every orifice.

One can dream...

TeamDepends's picture

One thing is certain, the Clintons were raping children, adults, countries, and continents in '95.

nmewn's picture

They also took TAX BREAKS on donating to...

...wait-for-it...

...WAIT-FOR-IT...

...THE CLINTON FOUNDATION.

Thats right Escrava, they took tax deductions for basically donating to themselves!!! So, you all good with that?

You should probably know something about WTF you're talking about in comparison before posting here.

Escrava Isaura's picture

Foundation is a 1023 Form 43 pages long.

Knock yourself out.

https://www.clintonfoundation.org/sites/default/files/clinton_foundation_form_1023_application_for_tax_exemption.pdf

 

rubiconsolutions's picture

Sure Escrava...as long you're trotting out links take a look at this - http://charlesortel.com/concentrating-on-clinton-foundation-facts

 

Charles Ortel has a ton of credibility and experience in exposing fraud which is exactly what the Clinton Foundation is. His conclusion:

"Yet, a vast record already in the public domain suggests this is exactly what members of the extended Clinton family and their associates have done for nearly 20 years, hiding their rampant criminality in plain sight."

RiverRoad's picture

It's never been a crime to take a tax loss.  Never has been; never will be.  Plenty of tax losses were taken after the Crash of 2008.

jcaz's picture

Yep- I had a seven-figure carry-forward that carried me thru three years of paying zero taxes-anyone with even a basic grasp of finance will understand that this isn't a "crime",  but obviously I'm expecting too much out of society;

Hell, if anything, I'm impressed that Trump is really moving this sort of capital-  Hillary doesn't know how to balance her freaking checkbook....

piliage's picture

Property development is brutal, picking up dimes in front of a bulldozer. It's like the old joke that Richard Branson said, "how do you become a millionaire? You're a billionaire and you start an airline"

I had a biotech investment go sideways in 2009, still writing it off on my cap gains. Yous wins some, yous lose some...

Bendromeda Strain's picture

Simple question Cabana Boy - have you or have you not bothered to watch (or read... unlikely) Clinton Cash by Peter Schweitzer? If you haven't, consider yourself disqualified from so much as conjecturing about Hillary's ethics.

Escrava Isaura's picture

I don’t waste my time looking for ethics at government, most economics departments, religion, Ivy league education, capitalism, and many other institutions.

It sounds rightfully for some people bringing up words such as ethics and morals while not practicing it.

 

ACES FULL's picture

Someone sure is chatty today. Running damage control in your own mind Escrava?

PirateOfBaltimore's picture

Why did she take charitable deductions if she thinks high earners should pay more?

Literally no different than what Trump did, except in degree.

knightowl77's picture

all their income came from bribes.....her million dollar donation to charity that she wrote off, was to her Clinton Foundation and therefore to herself....a charity that actually pays 5.6% of its income to charities, the other 90+% pays Clinton overhead

RiverRoad's picture

Overhead like hotel bills, parties, limosines and planes.

fattail's picture

40% of the $150 million she earned is the legally required tax.  "What good or service she provided to earn all that money?" is the convenient question never asked.  Of course the answer is she was selling access to the federal trough and federal policy to foreign interests.

RiverRoad's picture

Pimping the hell out of America.

jcaz's picture

Congrats, Escrava- officially the dumbest post ever on ZeroHedge-  you reference hillaryclinton.com for your "facts";

Dude-  how do you even manage to find your dick in the morning?

ACES FULL's picture

Yep,thats like Hillary at the debate referring watchers to HER website to fact check Trump. No bias there,lol.

Mr. Universe's picture

Answer: He doesn't have one. Post-op trannie. Only plausible explaination.

WillyGroper's picture

wanna buy some ocean front property?

Whoa Dammit's picture

The Clintons = ScandalsRUs.

The one that really gets to me is what Hillary did to the little 12 year old rape victim. And this one is totally her won--can't be deflected on to anyone else.  But her excuse is that she was just doing her job (like an SS guard).

http://www.dailymail.co.uk/news/article-3729466/Child-rape-victim-comes-...

Note this photo in the above artilcle from 1974. She is wearing tinted glasses way back then. Can't tell if they are blue or not as the photo is B&W. Known health problems even back then?

http://www.dailymail.co.uk/news/article-3729466/Child-rape-victim-comes-...

 

manofthenorth's picture

Donald and Hillary Go Into A Bakery on the Campaign Trail
As soon as they enter the bakery, Hillary steals three pastries and puts them in her pocket.
She says to Donald, "See how clever I am? The owner didn't see anything and I don't even need to lie! I will definitely win the election.
The Donald says to Hillary, "That's the typical dishonesty you have displayed throughout your entire life, trickery and deceit. I am going to show you an honest way to get the same result."
Donald goes to the owner of the bakery and says, "Give me a pastry and I will show you a magic trick." Intrigued, the owner accepts and gives him a pastry. Trump swallows it and asks for another one. The owner gives him another one. Then Donald asks for a third pastry and eats that, too.
The owner is starting to wonder where the magic trick is and asks, "What did you do with the pastries?"
Trump replies, "Look in Hillary's pocket

tmosley's picture

Yeah, why don't we tax these fucks on losses? If they lose a billion dollars, that's their problem! They have to pay their fair share, even if they are a billion dollars in the hole!