Hopefully, during repossession, they count his obnoxious branding as negative value and underprice what is being auctioned.
this post was submitted on 19 Mar 2024
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From my understanding, it essentially ends up with bidding for assets to get to the amount needed. Whatever the resulting high bid ends up, is the amount for that asset. So if something is valued at $500M but sells for only $200M, it only counts as $200M toward the judgment. Basically, estimated value means nothing, only what someone actually pays for it.
So if something is valued at $500M but sells for only $200M, it only counts as $200M toward the judgment.
Kind of less, he's paying taxes on the sale too, because he's still selling it even tho he doesnt get to keep the money.
And when selling half a billion dollars of real estate, you're going to pay a lot of taxes even in America.
So the 200 million goes to the judgement, but he's paying 20-40% percent in state/federal/local taxes. And it's all gonna happen in the same calendar year while a shit ton of accountants are watching his every move.
He's going to end up having to sell a lot more than the judgement to pay his tax bill a year from now.
And that's not even getting into his loans.
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Value a building at 100 million when it's worth 50
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Borrow 70 million on property.
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Sells for 40 and the bank needs 30 still.
There's no way out, even if the bank forgives the remaining 30, that still counts as taxable income for trump, compounding the first issue. And in that scenario, $0 is going to judgement and trump still loses the property and they move on to seizing the next on the list. He gets zero gain from the sale, but it's still drives up taxable income for him personally
trump could conceivably have a billion dollar gross income in 2024, and be completely broke with hundreds of millions due in tax.
Which is just insane.
Well pay taxes if you sell at a profit. Hard to say if the value of his assets increased.
No, it's still taxes.
If I buy a 50,000 car and sell it for 25000 2 years later, I'm still paying taxes.
How do you not know that?
The tax you pay is one the net gain, which is the amount realized less the base of the good (i.e., what you paid to acquire). I'm not a tax expert, and real estate can get really fucky with this stuff, but that's my understanding of the fundamental rules for taxation.
...
I'm not sure how to explain this any simpler.
My apologies, but if I tried again I'd just be repeating what I've just said.
Your explanation is wrong.
Here is an explanation of capital gains directly from the IRS:
The confusion is you think it's a "gain" only if sold for more than you paid, which isn't true.
When you sell a capital asset, the difference between the adjusted basis in the asset and the amount you realized from the sale is a capital gain or a capital loss. Generally, an asset's basis is its cost to the owner, but if you received the asset as a gift or inheritance, refer to Publication 551, Basis of Assets for information about your basis. You have a capital gain if you sell the asset for more than your adjusted basis. You have a capital loss if you sell the asset for less than your adjusted basis. Losses from the sale of personal-use property, such as your home or car, aren't tax deductible.
And having a loan doesn't negate gains. It's two separate things. Which is why this situation for trump is so crazy and his taxable income can balloon so much despite trump not getting any money.
I don't think explaining more would help, but since you bothered to provide a link. I took the time to show you where you were confused.
Actually, I’m hoping they come across more of the classified files I’m sure he stole.