Donald Trump, IRS, Terry Hall discussed on John Williams
Terry Hall sepa dot com is her business before the show. I said Terry, I'm just a little confused. Some people are calling and saying, Hey, the things that Donald Trump is being accused of doing wrong. Are the same things that we've done in the past. If our business fails, we're able to use accounting laws to go ahead and deduct some of our losses and even get some of our money back. So what about that all the elements of what he had are all accepted practices in tax rolls and real estate? This is She's taken them to extremes, and he's taken them beyond the point where he has a reasonable expectation of a profit in the states is you know what I've seen and read. The underlying principle would be that you, Khun! Conduct business and spend money and deduct your expenses. If you in an enterprise that you expect to become profitable at some point, some take longer than others. State you know, horse racing. It might take more than the usual calendar year to realize a profit. So the appreciation you're deducting the cost of some assets over a long period of time. But the expectation is at some point, the operations were gonna become profitable and making money at some point you're supposed to say. If I'm not any good if I have to stop, that's what it looks like in the reporting. We have. This guy has very been any good at Trump Tower was and still is profitable, but some of his golf courses, many of his golf courses were not. Many of his other properties were not the golf course business or golf resort business is notoriously difficult to make money at it. And these things take time. If you're going to build a hotel bill the brand to get people to come in. I would imagine that would take a while to turn a profit. No That's true, And I'm sure that the one with all this time is whether or not they can divide this thing up. When you look at it is his business, really developing real estate or promoting himself? You know what he's made Money at seems to be the celebrity game, spending a lot of money to be which glamorous so that people want to buy things with his name on them. That's what he's good at. So then is his. I want to go back to the real estate business in just a minute, but About that, Then do you? Do you feel that $70,000 in Haircuts and $100,000 for his daughter in makeup are reasonable expenses because it promotes the allure of the glamour of their brand. Well, if you think that haircut makes you look $70,000 glamorous, then maybe it ISS A lot of people in the Liberty game are projecting that sort of thing. Right? Well, that gets a lot of attention. But I think If you're a public person, your image is, in fact, your brand, You know, it's just another example of how the rich seemed to play by different rules than the rest of us. I don't get to deduct my haircut. Be excessive. But clearly the principal harden your radio reporter. But if you want a TV, maybe your haircut would be deduct about. I'm a little confused about your suggestion that if you're not good at your business, the IRS begins to regard the deductibility of your losses is somehow different than somebody who is successful in business. What business is it of the I R s is if I'm struggling right now, Much of the island. It's a presumption that if you lose money for more than two, more than three years in a roll It's obvious not a business and different rules apply to a hobby. In fact, your revenues are taxable, but your expenses are deductible on his itemized expenses. Which is a whole different category, and also to the extent of your revenue. You can't create a lot for tax purposes with hardly a lot of writing about the rules waited to have these businesses, but the basic principle is They're gonna cooperate with you and allow you to spend money and a lot of way if they feel that ultimately your goal is to have a profit and you have a reasonable expectation of a prophet. It's more logical example somebody besides you want to become a painter. They take up art. It said he might take art classes to get good at it. They can't deduct classes because they're teaching them a new job. But once they're in that job, but they take more classes would be deductible. Now you're going to be painting your painting pictures of going to art shows. And you're only a few paintings and that's great. But if you don't start selling enough to cover your expenses were going to say you do this because it's your hobby. And you like it for some other reasons, not because you're in the business of this support yourself. Is that how the accounting world looks a Donald Trump? Because I'm sure nobody thinks of what he does is a hobby. That's his business. That was his business before the Apprentice. I think the world has that Donald Trump has a business failure for many, many years. And has been astonished, and here's a bit with the morph into a celebrity who's instead pulling out of this into a giant identifies. And then if I took his accountant Kind of you. I'd probably say that all my political campaigning was an attempt to continue to make my brand grammar and famous and increase my influences of celebrity. And while we are a little bit, political expenses are not deductible. You could even make a case for that in his time text which leads me to this whole business, that if in fact I mean shoot this been going on since 2008. This disagreement with Donald Trump in the IRS over $73 million in deductions, if if that's been going on for 12 years. Clearly, the law's a little murky on this or undecided and I think a lot of us are saying OK, however, that thing shakes out those laws need to be changed. The IRS will demand that I make a payment on on my tax bill. If I fail in business, nobody is going to grant me 12 years, especially if I owe $73 million. It seems to me like they're playing by different rules. Terry. I think you're on the head, and I think it's a topic of discussion, and they're conning widows for years. If you have lots of money and even more if you have a lot of influence You can use these laws. You feather your own bed. There's a lot now passed by the cares accident. You could do this again. If you have a 2019 or You can carry it back for five years. That's what he did in 20. Experienced a great big.