One of the biggest issues of the most recent Presidential election was the release of Donald Trump’s tax returns. Not that long ago some of that data was released, and the debate on whether it was done voluntarily or was leaked continues. Another point of contention surrounding President Trump’s tax returns is the information contained in those returns. By and large most Americans are still not satisfied with what has been made public, and more questions than answers remain. Among the things most of you are wondering are how much he made, how much he paid, and what types of “breaks” he got when he filed. Another hot topic about the returns are whether filing for bankruptcy played a role in the final figures.
So what’s the real story? What exactly do the Trump tax returns show, and is there any notation of the bankruptcy he referred to in one of the debates as being something that made him “smart”? Here is some general information about President Trump’s tax returns, so you can decide for yourself if you are satisfied with what has been reported:
• In 2005 the President made around $150 million.
• Of that amount, the taxes paid adds up to about $38 million. This is an effective tax rate of right around 25%.
• The rate of taxes paid was largely due to the alternative minimum tax, which is a tax provision the President has stated he’ll change.
• Whether any bankruptcy or other debt relief was utilized is not something that the two page return which has been “released” shows.
We all know the tax rules and regulations are complex, and that in order to get a return done right it usually takes the help of a trained tax professional. Whether things like depreciating assets or filing for bankruptcy have any impact on your tax liability is something best left to a professional. This might include an accountant, but should certainly include a knowledgeable bankruptcy and debt management attorney. In most cases a bankruptcy will not play a large role in your tax return, but should still be an issue that is raised with your attorney when you are deciding whether to file a case. The most common tax issue faced by the average bankruptcy filer is whether they will get to hang on to any refund they receive. We can help you figure that out, and also answer any other questions you have about how bankruptcy can help you.
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.