New York Business recently reported that Donald Trump’s most recent property tax bill gave him a credit that is available only to households earning less than $500,000 per year. Naturally, the author wondered how a man with the wealth he claims could be eligible for a “middle class” tax credit. The Donald wouldn’t tell.
The Tax Bill
Trump’s property tax bill for the condo where he lives was about $193,000. He received a credit of $304 under the School Tax Relief program, known as STAR. He also received an abatement for condominium owners Apparently, Trump used to receive the STAR credit on a different building. When he sold that building, the city transferred his credit to the condo in Trump Tower.
The Crain’s story noted that real estate investors can defer gains and claim expenses to keep their taxes as low as possible. So it is possible that his income could be below $500,000. Then again, his income would have to have been that low for each year that he got the credit.
Trump’s Response to Questions
When the Crain’s reporter asked him about the STAR credit, Trump first said it was the city’s mistake. But the city disagreed. Eventually, Trump asked the city to take the credit off his tax bill. He still refuses either to release his tax returns or to answer questions about his personal income or tax deductions, telling reporters, “It’s none of your business.”
Conflicting Filings and Statements
When Trump filed his most recent Personal Financial Disclosure with the Federal Election Commission (FEC), he released a statement that he was “proud” to have filed the largest statement of any candidate ever, at 104 pages. He claimed income of $557 million, although the release described it as revenue; either way, it was up from $362 million the previous year. According to the release, the revenue figure does not include capital gains, dividends, rents, royalties, or interest. He claimed a net worth of over $10 billion, up from $8.7 last year.
Other sources who track wealth disagree, however. Forbes estimates his net worth at $4.5 billion. Other sources say $3 billion. It’s likely that his public statements are exaggerated.
Image via Flickr by Gage Skidmore under The Creative Commons License 2.0.
