Trump's businesses reportedly gave different financial figures to lenders and tax authorities as recently as 2017
More questions have arisen surrounding President Trump's businesses after ProPublica obtained documents via New York's Freedom of Information Law.
The documents show that for two of Trump's New York properties — 40 Wall Street and the Trump International Hotel and Tower — different financial figures were reported to lenders and to tax authorities. For example, the Trump Organization told a lender that 40 Wall Street had been 58.9 percent leased on Dec. 31, 2012, before vaulting to 95 percent a few years later, which reportedly represented borrower-friendly "leasing momentum." But the company reportedly disclosed that the building was 81 percent rented as of Jan. 5, 2013 to tax officials. Ultimately, the reporting strategy helped Trump reach favorable terms — he received a 10-year loan with a lower interest than the building previously had and was also able to defer paying off much of the principal until the end of the loan. "There was a story crafted here," said Kevin Riordan, a financing expert and real estate professor at Montclair State University.
As for Trump Tower, the company reportedly told tax authorities that the building made around $822,000 renting space to commercial tenants in 2017, while reporting to lenders that it took in nearly double that. In eight years of data ProPublica examined for the property, the Trump organization generally reported gross income to tax authorities that was around 81 percent of what it reported to the lender.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
There can be legitimate reasons for such numbers to diverge, real estate experts have noted, but those same experts told ProPublica that some of the gaps in the documents did not appear to have any reasonable justification. Nancy Wallace, a professor of finance and real estate at the Haas School of Business at the University of California, Berkeley said the discrepancies amount to some "versions of fraud." Read more at ProPublica.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
Octopuses could be the next big species after humans
UNDER THE RADAR What has eight arms, a beaked mouth, and is poised to take over the planet when we're all gone?
By Rafi Schwartz, The Week US Published
-
Sudoku medium: December 23, 2024
The Week's daily medium sudoku puzzle
By The Week Staff Published
-
Crossword: December 23, 2024
The Week's daily crossword
By The Week Staff Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published