Former President Donald Trump is facing a potential tax bill of over $100 million following a lengthy IRS investigation into his claims of significant losses on his Chicago skyscraper. The investigation stems from Trump's assertions of substantial financial losses, first made on his 2008 tax return when he deemed the building as 'worthless' due to its debt-ridden state. Subsequently, in 2010, Trump transferred ownership of the property to a new partnership under his control, enabling further claims of losses.
Trump's 2008 claim led to reported losses of up to $651 million for that year, with no apparent challenge from the IRS. His lawyers facilitated additional loss claims in 2010 by transferring the Chicago tower to 'DJT Holdings LLC,' a partnership that was later used to claim tax-reducing losses from other Trump businesses, such as golf courses. This maneuver triggered the IRS inquiry, with cumulative losses amounting to $168 million over the following decade.
The IRS is seeking a revision that could result in Trump owing more than $100 million in taxes. The only public acknowledgment of the IRS audit into Trump's Chicago tower losses was made in a December 2022 congressional report, indicating that the audit is ongoing. In response, Eric Trump, the executive vice president of the Trump Organization, stated that the matter had been resolved years ago and expressed confidence in their position, backed by opinions from various tax experts.
