According to The New York Times, lenders forgave Donald Trump for failing to pay back $270 million worth of debt for a 92-floor skyscraper in Chicago.
An investigation of Trumps tax returns revealed that when the construction of Trump International Hotel & Tower hit financial trouble, a big bank and a hedge fund granted him years of extra time to pay off his debts. But most of his debt was forgiven.
Wednesday morning Trump tweeted that he was “able to make an appropriately great deal with the numerous lenders” on the tower. “Doesn’t that make me a smart guy rather than a bad guy?”
Records suggested that Trump paid the minimal federal income tax on the forgiven debts because of the losses he took in his other large businesses.
The Trumps Organization’s chief legal officer, Alan Garten told the Times that both the company and Trump paid all their taxes due on the forgiven debts.
Since 2010, Trump has had a total of $287 million of debt forgiven, most coming from the construction of the Chicago tower, which was completed in 2008.
In documents viewed by the Times, Trump arranged for two of his companies to borrow more than $700 million for the building project.
Reports say that Germany’s Deutsche Bank gave Trump $640 million. While the rest came from Fortress Investment Group.
In 2008, the loans were due on the Trump International Hotel & Tower, but it was still unfinished. The Deutsche Bank ended up giving Trump a six-week extension to repay the money.
At this point, Trump’s company owed over $464 million in debt. The Deutsche Bank $334 million in principal and interest, and Fortress $130 million, not including interest and fees.
After The Deutsche Bank declined Trumps second request for extension, he sued them for “predatory lending practices” and sought $3 billion in damages.
The bank then filed its own lawsuit, demanding repayment of the loan.
In July 2010, lawyers for Trump, Deutsche Bank, and Fortress reached a private settlement, but didn’t disclose the terms.
But according to tax return records and loan documents, lenders forgave Trump for $270 million worth of debt.
Previously Times reported that Trump avoided paying federal income taxes for 10 of the last 15 years, and he only paid a total of $750 in federal income taxes in 2016 and 2017.
As a developer long ago, and continuing to this day, the politicians ran Chicago into the ground. I was able to make an appropriately great deal with the numerous lenders on a large and very beautiful tower. Doesn’t that make me a smart guy rather than a bad guy?
— Donald J. Trump (@realDonaldTrump) October 28, 2020
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