President Donald Trump declared a $916 million loss on his 1995 income tax retur
ID: 2436352 • Letter: P
Question
President Donald Trump declared a $916 million loss on his 1995 income tax returns. It has been speculated that he may not have paid any federal taxes for up to 18 years after declaring this loss in 1995.what is the rationale for this speculation that President Donald Trump may not have paid taxes for up to 18 years after declaring the loss in 1995? What is the rule regarding the treatment of a net operating loss?
President Donald Trump declared a $916 million loss on his 1995 income tax returns. It has been speculated that he may not have paid any federal taxes for up to 18 years after declaring this loss in 1995.
what is the rationale for this speculation that President Donald Trump may not have paid taxes for up to 18 years after declaring the loss in 1995? What is the rule regarding the treatment of a net operating loss?
what is the rationale for this speculation that President Donald Trump may not have paid taxes for up to 18 years after declaring the loss in 1995? What is the rule regarding the treatment of a net operating loss?
Explanation / Answer
Rationalle behind this is that American tax laws allows a person to carry forwars the loss amount for 20 years. Thus when Trump reported losses of $ 916 million, it is believed that he could have used the provisions of the law and not paid taxes for the next 18 years till the time his NOL is exhausted.
Provisions of NOL state that company can carry back the current years NOL to 2 years back to set off agains taxable income and demand refund. However if it is anticipated that tax burden in coming years will be higher or tax has not been paid in previos year than company can also carry forward it for 20 years or till when NOL is exhaused.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.