{"slug":"trump-inheritance-tax-fraud-413-million","title":"Tax Fraud Investigation: Trump Helped Receive $413 Million Through Fraudulent Schemes","date":"1990-01-01","lastUpdated":"2018-10-02","description":"A 2018 New York Times investigation based on confidential tax and financial records documented that Donald Trump received at least $413 million from his father Fred Trump's real estate empire through tax evasion and outright fraud. The schemes included undervaluing Fred Trump's estate to reduce estate taxes, using a shell company to inflate valuations of Fred's loans to his children (allowing tax-free transfers), and falsely valuing Fred Trump's real estate empire in ways that dramatically reduced the tax owed. The investigation contradicted Trump's long-standing claim to be a self-made billionaire who had received only a $1 million loan from his father.","summary":"The Times investigation identified multiple strategies: Fred Trump created a shell company called All County Building Supply & Maintenance to collect money from Trump properties, which was then used to justify large increases in maintenance fees that were passed to Trump children as untaxed income; Fred Trump's estate was valued at far below market rates to reduce estate taxes; and the children, acting in concert, were able to receive hundreds of millions in what amounted to gifts but were legally classified in ways that minimized tax exposure. The New York Department of Taxation opened a review.","category":"corruption","severity":"major","ongoing":false,"sources":[{"url":"https://www.nytimes.com/interactive/2018/10/02/us/politics/donald-trump-tax-schemes-fred-trump.html","title":"Trump Engaged in Suspect Tax Schemes as He Reaped Riches From His Father","publisher":"The New York Times"},{"url":"https://www.washingtonpost.com/politics/trump-family-tax-schemes/2018/10/02/1af8b458-c5f6-11e8-b1ed-1d2d65b86d0c_story.html","title":"Trump family tax schemes detailed in NYT investigation","publisher":"The Washington Post"},{"url":"https://apnews.com/article/trump-inheritance-tax-schemes-fred-trump","title":"Trump inherited far more from father than acknowledged","publisher":"The Associated Press"}],"draft":false,"status":"published","tags":["tax-fraud","inheritance","Fred-Trump","pre-presidency","financial","estate"],"relatedEntries":[],"timeline":[{"date":"1990-01-01","title":"All County Building Supply created","summary":"Fred Trump creates All County Building Supply & Maintenance, owned by his children including Donald. The company collects payments from Fred's properties and passes inflated amounts through to Trump children — functioning as a vehicle to transfer wealth without gift tax obligations."},{"date":"1999-06-25","title":"Fred Trump dies — estate significantly undervalued","summary":"Fred Trump dies. His estate is valued for estate tax purposes at $41.4 million by appraisers — a figure the Times investigation found dramatically understated the actual value of his real estate holdings, which independent appraisers estimated at $500-600 million."},{"date":"2018-10-02","title":"NYT investigation published","summary":"The New York Times publishes its investigation documenting more than $413 million in transfers from Fred Trump to his children, multiple tax avoidance schemes, and Donald Trump's active participation in strategies to minimize taxes on the inheritance."},{"date":"2018-10-03","title":"New York Department of Taxation opens review","summary":"The New York Department of Taxation and Finance states it is 'vigorously pursuing all appropriate legal remedies' based on the Times investigation. The investigation did not result in criminal charges."}],"location":{"name":"New York, NY","lat":40.7128,"lng":-74.006},"custom":{"era":"pre-presidency","posture":"reported","warCrimeClassification":"enabling","internationalLaw":[],"iccRelevance":false,"victims":"U.S. taxpayers defrauded through systematic estate tax evasion; public trust in tax system integrity","structuredPerpetrators":[{"name":"Donald Trump","role":"Active participant in schemes to reduce estate taxes and receive undisclosed income; primary beneficiary","institution":"Trump family / Trump Organization"},{"name":"Fred Trump","role":"Father; primary architect of wealth transfer schemes","institution":"Fred Trump real estate empire"}],"updateLog":[{"date":"2018-10-02","summary":"Documented from NYT investigation."}]}}