Comments by "David Himmelsbach" (@davidhimmelsbach557) on "We Now Know EXACTLY What New York Prosecutors Are Looking For In Trump's Taxes" video.

  1. At Trump's level of wealth and assets, the IRS audits tax returns -- even before they are filed! Comedian Johnny Carson had tax returns that stacked taller than a man. He was audited every year before they even went out the door. The valuation of leveraged depreciable assets are ALWAYS what the IRS checks out, because they mean write-offs for years. BTW, the OP is off base. What the IRS is 'on' about is DEBT FORGIVENESS. That's deemed INCOME by IRS regs. Since Trump used overseas banks -- they could write down debts without the IRS really being clued in. BTW, the banks I'm posting about would HATE, HATE, HATE to make public such write-downs. Their own regulators feel the same way. That's Europe for you. The OP's assertion that valuations of this or that property trigger a tax crime are a joke. EVERY Real Estate baron BS's about his holdings 100% of the time. That's why banks ALWAYS use independent experts to evaluate the illiquid real estate collateral for any loan -- large or small. Don't be at all surprised to discover that Trump has had BIG write-downs over the years. BTW, Trump's gambits are STANDARD FARE in the world of Big Real Estate. He didn't invent them. Lastly Trump did not inherit great wealth to launch his real estate empire. To inherit, your parents have to die. Donald was rocking because of the 70's real estate boom in Manhattan. Fred died in 1999. Gift taxes in New York are so insane that it's impossible to transfer Big Money in one generation -- especially if you're STILL ALIVE. Yet, everyone keeps believing that Fred gave Donald Big Money. Donald was on radio, many decades ago, already famous, and already a Major Patron of Democrats in New York. He laid out his start. Fred SOLD him two rent-controlled apartments in Queens, NY. ( Fred was a Big Queens man. ) He did so using the Carleton Sheets No-Money-Down Purchase Money Mortgage scheme. Donald put down a trivial amount of money -- and Fred carried back the PMM. This was a common event in New York at that time. (Carleton was doing the exact same thing down in Florida at the same exact time. His life story is out there.) Fred had too much on his plate, too much to chase fraudsters out of his apartments. This fraud consisted of sons and daughters taking over rent-controlled units on the sly. Mom and Dad could well be in Florida... or dead. The kids could then hang on forever and ever, paying rents that made sense in 1958. Heh. Donald simply moved in and stopped the cheating. By rule, once the original tenant left -- for any reason -- the apartment could be put on the market for whatever rent it could bear. That meant that Donald had leaping cash flow. He'd move out the old, bring in crews to totally re-hab the unit -- and then re-rent at current market rates -- typically five times what the rent was before. Said units simply exploded in financial value. Donald then raced to Manhattan to do more Carleton Sheets deals... only this time the buildings were huge and in downtown Manhattan. His first project was an insane money spinner. His life trajectory was set: Enter super-leveraged deals in Manhattan, buying out the older generation, re-hab like crazy, re-rent at 1970's rates as New York BOOMED in the late 70's. Donald was the talk of the town by 1979. If Carleton Sheets had been in New York -- he'd have done as well as Donald Trump. He also became astoundingly wealthy -- using Other People's Money. He made so much flipping properties that the IRS came after him. He was a dealer. So Mr. Sheets had to go on TV and raise cash to pay off the IRS. Trump executed so few deals that the IRS never deemed him a dealer.
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