Sanders Announces Bill to Close Tax Loopholes Used by Trump

[BoyNextDoor]

“Special tax breaks and loopholes in a corrupt tax code enable billionaires and powerful corporations to avoid paying their fair share of taxes while sticking the burden on the middle class,” Sanders said. “It's time to create a tax system which is fair and which asks the wealthy and powerful to start paying their fair share of taxes.”

Special breaks and loopholes in the tax code favor wealthy real estate investors like Trump and do nothing to boost the economy. These breaks likely made it easier for him to claim losses of $916 million in the 1990s and avoid paying income taxes in subsequent years.

“I will be introducing comprehensive legislation at the beginning of the next session of Congress to do just that,” Sanders said.

Exemption for real estate from passive loss rules. (Section 469)
The passive loss rules, enacted as part of President Ronald Reagan’s Tax Reform Act of
1986, generally bar taxpayers from using losses from a business the taxpayer is not really
involved in to offset active income. An exception was made for real estate, meaning
Trump can use his real estate losses to offset any other income, whether it is book
royalties or compensation for starring on the Apprentice.

Exemption for real estate from at-risk rules. (Section 465)
Also enacted as part of the Tax Reform Act of 1986, the at-risk rules bar taxpayers from
claiming losses for investment beyond the money they put in or that they are directly
liable for. Again, real estate was largely exempted, meaning Trump could claim losses
exceeding what he actually invested.

Like-kind exchanges. (Section 1031)
Usually capital gains on property are taxed when the property is sold, but taxpayers can
swap pieces of property of the same type and claim that they have no gain to report to the
IRS because there was technically no sale. The exchanges are often a sham because they
often involve vastly different properties.

Debt and Depreciation.
Under current law investors can combine tax breaks for borrowing with tax breaks when
an investment rapidly loses values. So an investor like Trump can borrow money to make
an investment, take deductions for the interest he pays on the debt and take deductions if
the property depreciates

 

[BoyNextDoor]

That, folks, is how you put forward a public policy initiative.

Go Bernie!

 

[4est_4est_Gump]

He'll get limited backing; he's swimming upstream.


Hillary's financiers on Wall Street will abort that one long before it can come up for a vote.

 

[LadyFunkenstein]

I have used the Like Kind exchange twice, and I most certainly am not rich. Lots of couples sell their small house or condo then put the earnings into a bigger place. I do believe there is a limit to it, one that already excludes the type of property a rich person would buy. I haven't read it in 10 years so it is possible the threshold increased. ( furthermore there may be different rules form commercial property, I don't know) But if it is what I vaguely recall, I am firmly against repealing this.

 

[RobDownSouth]

He'll get limited backing; he's swimming upstream.


Hillary's financiers on Wall Street will abort that one long before it can come up for a vote.

Zero-to-Hillary in five minutes. You're slipping, Chief.

 

[OldJourno]

That, folks, is how you put forward a public policy initiative.

Go Bernie!

Now watch the crony capitalists bury it.

 

[BoyNextDoor]

Now watch the crony capitalists bury it.

Let's give Bernie the help he needs in the Senate ...

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