Saturday, October 8, 2016

Genius: Trump's $916 Million Tax Loss Lasts 20 Years, Yet IRS Audit Period Is Only 3

By Forbes, Oct 05, 2016 

Brilliant or not, Donald Trump had big losses in 1995. And that means a big pot of losses than he can—and probably did—use to offset other income across many years. That’s the system, one that makes everyone file tax returns annually, but that can allow losses to span many years. A net operating loss or NOL is the excess of a taxpayer’s deductions over gross income.

You count income and expenses in only one year. After all, our tax system is annual. But then, you can use the loss in the two prior years (in what’s called a carryback) or in the following twenty years. As has been widely said, this can allow someone to legally not pay taxes for up to 20 years. You apply a portion of the NOL every year to your current year income. You can thereby immunize the current year income from tax.

Read More:

Join us - become an Elderado today at:

Follow Larry Elder on Twitter

"Like" Larry Elder on Facebook

No comments:

Post a Comment

Comment Policy:

The author of this blog will attempt to engage in conversation via the comments section whenever possible and recognize the 24/7 nature of the internet. Moderating and posting of comments will occur during regular operational hours Monday through Friday. Comments submitted after hours or on weekends will be read and posted as early as possible, however admins and/or the author is unable to commit to replying to every comment posted.

This is a moderated blog. That means all comments will be reviewed before posting. In addition, it is expected that participants will treat each other, as well as the author and admin, with respect. Comments that contain vulgar or abusive language; personal attacks of any kind will not be posted. Comments that are spam or that promote services or products will not be posted. It is requested that all comments remain on topic.

The Elder Statement blog does not guarantee or warrant that any information posted by individuals on this blog is correct, and disclaims any liability for any loss or damage resulting from reliance on any such information. The Elder Statement blog may not be able to verify, does not warrant or guarantee, and assumes no liability for anything posted on this website by any other person. The Elder Statement blog does not endorse, support or otherwise promote any private or commercial entity or the information, products or services contained on those Web sites that may be reached through links on our Web site.

To protect individual privacy and the privacy of others, please do not include phone numbers, addresses or email details in the body of a comment. Such information will result in removal of a comment.

Thank you for your attention.

The Elder Statement