Report: Financial records appear to show Ivanka Trump got 'consulting fees' to reduce father's tax bill


Tax records obtained by The New York Times appear to show that President Trump reduced his taxable income by treating his eldest daughter, Ivanka Trump, as a consultant, then deducting this as a business expense.
The Times reports that Trump Organization tax records show between 2010 and 2018, President Trump wrote off as business expenses $26 million in "consulting fees." The consultants are not listed by name, but the Times compared the tax records to financial disclosures Ivanka Trump filed when she started working at the White House in 2017 as a senior adviser to her father. Ivanka Trump reported receiving $747,622 in payments from a consulting company she co-owned — the same exact amount in consulting fees the Trump Organization claimed as tax deductions for hotel projects in Hawaii and Vancouver.
As an executive officer with the Trump Organization, Ivanka Trump managed the Hawaii and Vancouver hotel projects, "meaning she appears to have been treated as a consultant on the same hotel deals that she helped manage as part of her job at her father's business," the Times said. Ivanka Trump earned a salary of about $480,000 while serving as an executive with the Trump Organization, and the amount jumped up to $2 million after her father became president, the Times reports; since leaving to work in the White House, she has not received a salary from the company.
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.
The tax filings also show that Trump collected $5 million for a hotel deal in Azerbaijan and reported $1.1 million in consulting fees and made $3 million in Dubai while reporting a $630,000 consulting fee. People with direct knowledge of the deals told the Times they were not aware of any consultants or third parties who would have been paid in connection with the projects. When asked about the matter, Alan Garten, a lawyer for the Trump Organization, did not comment.
The Internal Revenue Service said for consulting fees to be deducted as an expense, they must be an "ordinary and necessary" part of running a business, and the recipient must still pay income tax.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
-
October 13 editorial cartoons
Cartoons Monday's political cartoons include Donald Trump's consolation prize, government workers during shutdown, and more
-
Can Gaza momentum help end the war in Ukraine?
Today's Big Question Zelenskyy’s request for long-range Tomahawk missiles hints at ‘warming relations’ between Ukraine and US
-
The Israeli hostages and Palestinian prisoners being released
The Explainer Triumphant Donald Trump addresses the Israeli parliament as families on both sides of the Gaza war reunite with their loved ones
-
Israel, Hamas agree to first step of Trump peace plan
Speed Read Israel’s military pulls back in Gaza amid prisoner exchange
-
Israel intercepts 2nd Gaza aid flotilla in a week
Speed Read The Israeli military intercepted a flotilla of nine boats with 145 activists aboard along with medical and food aid
-
Japan poised to get first woman prime minister
Speed Read The ruling Liberal Democratic Party elected former Economic Security Minister Sanae Takaichi
-
Israel and Hamas meet on hostages, Trump’s plan
Speed Read Hamas accepted the general terms of Trump’s 20-point plan, including the release of all remaining hostages
-
US tipped to help Kyiv strike Russian energy sites
Speed Read Trump has approved providing Ukraine with intelligence for missile strikes on Russian energy infrastructure
-
Netanyahu agrees to Trump’s new Gaza peace plan
Speed Read At President Trump's meeting with Israeli Prime Minister Benjamin Netanyahu, they agreed upon a plan to end Israel’s war in Gaza
-
Russia is ‘helping China’ prepare for an invasion of Taiwan
In the Spotlight Russia is reportedly allowing China access to military training
-
Moldova gives decisive win to pro-EU party
Speed Read The country is now on track to join the European Union within five years