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In reply to the discussion: Deutsche Bank loans to Trump co-signed by Russian Oligarchs. [View all]lapfog_1
(31,920 posts)Fred Trump repeatedly bailed out his son Donald with "a spigot of loans" he never paid back, the Times found. This particular deal jumped off the page as something Leo Getz might do:
By 1987, for example, Donald Trumps loan debt to his father had grown to at least $11 million. Yet canceling the debt would have required Donald Trump to pay millions in taxes on the amount forgiven. Father and son found another solution, one never before disclosed, that appears to constitute both an unreported multimillion-dollar gift and a potentially illegal tax write-off.
In December 1987, records show, Fred Trump bought a 7.5 percent stake in Trump Palace, a 55-story condominium building his son was erecting on the Upper East Side of Manhattan. Most, if not all, of his investment, which totaled $15.5 million, was made by exchanging his sons unpaid debts for Trump Palace shares, records show.
Four years later, in December 1991, Fred Trump sold his entire stake in Trump Palace for just $10,000, his tax returns and financial statements reveal. Those documents do not identify who bought his stake. But other records indicate that he sold it back to his son.
No doubt Fred took a tax deduction for the loss. Leo Getz would approve.