The FMU Fightin' Uteri
Originally Posted by eccieuser9500
i challenge you with my banana slugs! GO SLUGS!!!
the motto of house Waco Kid ..
How does one "manipulate" the tax laws? GAAP stands for? Originally Posted by lustyladThat's funny and naïve. Generally Accepted Accounting Principal.
That's funny and naïve. Generally Accepted Accounting Principal. Originally Posted by TheWandererWrong. It's Generally Accepted Accounting Principles.
I didn't say it was illegal just illustrating how large corporations avoid paying income taxes. You don't think corps can manipulate depreciation? Originally Posted by TheWandererYou "illustrated" nothing. Still waiting for you to provide a concrete example of manipulation.
More fake news.
At first the NYT talked about Trump's tax returns.
Then the NYT characterized them as Trump's tax documents.
Then the NYT called them Trump's tax transcripts.
And the next day it was off most websites front page.
President Trump should have the NYT's offices raided by the FBI and sieze their servers.
If you're "distressed" by how much money Trump lost in those years, you should see how much money the New York Times lost. Originally Posted by gnadfly
My question is how did Trump actually lose 1.17 billion dollars. He didn't have 1.17 billion dollars to begin with. The banks lost that money. Did they show that loss on their books? How can both Trump and the Banks show that loss? Originally Posted by txdot-guyAll good questions, except for the last one. If a bank lends money to a failing business, both can indeed take losses - the business shows an operating loss, and the bank takes a loss when it writes down the loan!
All good questions, except for the last one. If a bank lends money to a failing business, both can indeed take losses - the business shows an operating loss, and the bank takes a loss when it writes down the loan!Now this is an informative post. Thanks for the cogent response.
Trumpy already answered a lot of your questions with one word - depreciation. Depreciation is a big non-cash expense, especially in the real estate industry. Plenty of businesses have positive cash flow but book a loss after deducting non-cash expenses such as depreciation.
I wouldn't be surprised if the losses also included some write-downs of real estate and/or other assets to market value. That's a balance sheet adjustment that doesn't affect cash flow.
You also shouldn't assume the banks lost the same amount trumpy did, dollar for dollar. Trump is the equity holder, so in bankruptcy he loses everything he put into a project. Banks are secured lenders, so they can recover part of their exposure, when assets are liquidated to pay off creditors.
Banks can also show forebearance and negotiate with the borrower to ease or stretch out repayment terms. Back in 1990-91, the big New York money center banks did this with Trump. As part of the loan negotiations, they clamped down on his lavish life style, forcing him to sell his yacht and curtail his salary/personal spending. When real estate markets bounced back in the late 1990s, most of the loans were repaid. Many of the NY banks used this opportunity to exit their relationships with Trump, but other lenders such as Deutsche Bank quickly stepped in to replace them.
As Jackie said in post #2, none of this is news, except to dimwits who haven't been paying attention to Trump's very public life story over the past four decades. Originally Posted by lustylad