Report: Trump could have legally avoided taxes for years

A $916 million loss Donald Trump reported on his 1995 income tax returns could have allowed him to legally avoid paying any federal income tax for up to 18 years, The New York Times reported Saturday. 

{mosads}The Times obtained fragments of Trump’s 1995 tax records, not previously released, that show Trump reported a federal adjusted gross income loss of $915.7 million in the wake of financial struggles at three Atlantic City casinos, his airline business and purchase of Manhattan’s Plaza Hotel.

Trump has not released his tax returns, so it’s still unclear if he paid federal income tax in subsequent years. 

At Monday’s presidential debate, when Democratic nominee Hillary Clinton accused him of not paying federal income taxes, he replied, “That makes me smart.”

The Times, which says it was mailed three pages of the Republican presidential nominee’s tax documents, says the limited view of his finances from that year do show a shrewd ability to use tax code to his advantage, especially when it came to translating his business losses into personal tax benefits. 

In the early 1990s, Trump’s real estate projects and other businesses were quickly losing money, New Jersey casino regulator records and other documents have shown. 

Trump also used a tax loophole designed for commercial developers to claim $15.8 million in losses on his real estate holdings and partnerships. 

The Times said that Trump reported earning $7.4 million in interest income for the year but just over $6,000 in wages, salaries and tips.

Politico previously reported that Trump likely paid no federal income taxes in at least two years in the early 1990s.

“The only news here is that the more than 20-year-old alleged tax document was illegally obtained, a further demonstration that the New York Times, like establishment media in general, is an extension of the Clinton Campaign, the Democratic Party and their global special interests. What is happening now with the FBI and [Department of Justice] on Hillary Clinton’s emails and illegal server, including her many lies and her lies to Congress are worse than what took place in the administration of Richard Nixon – and far more illegal,” the Trump campaign said in a statement.

The campaign went on to say Trump is a “highly-skilled businessman who has a fiduciary responsibility to his business, his family and his employees to pay no more tax than legally required,” and said Trump has paid millions of dollars in taxes.

“Mr. Trump knows the tax code far better than anyone who has ever run for President and he is the only one that knows how to fix it.”

Clinton’s campaign manager, Robby Mook, said the newspaper’s report “reveals the colossal nature of Donald Trump’s past business failures and just how long he may have avoided paying any federal income taxes whatsoever.”

“Now that the gig is up, why doesn’t he go ahead and release his returns to show us all how ‘smart’ he really is?” Mook asked in a statement.

— This report was updated on Oct. 2 at 8:09 a.m.

Read more from The Hill: 

Trump touts tax knowledge following blockbuster report