Donald Trump avoided paying taxes on hundreds of millions in casino debt

The Trump Taj Mahal in Atlantic City, New Jersey, closed on October 10, 2016, after suffering numerous financial problems. Photo by Jesper Rautell Balle Republican presidential nominee Donald Trump avoided paying taxes on hundreds of millions of dollars in casino debt, The New York Times reports.

During the early 1990s, Trump racked up $1.3 billion in debt in connection with his failed casinos in New Jersey, the paper said. But he convinced lenders to forgive some of his debt, a common practice in the financial industry.

Normally, Trump would had to report the canceled debt as income. Instead, he came up with a "stock-for-debt swap" and never paid taxes on it, according to the paper, which cited documents filed in connection with the bankruptcies of his three Atlantic City casinos.

"He’s getting something for absolutely nothing," John L. Buckley, a tax attorney who once worked for Congress, told The Times.

Congress has since barred stock-for-debt swaps by corporations and by partnerships. Trump was using a partnership to run his casinos at the time.

His Democratic rival in the presidential race, Hillary Clinton, voted to close the loophole for partnerships in 2004, The Times reported.

Read More on the Story:
Donald Trump Used Legally Dubious Method to Avoid Paying Taxes (The New York Times 11/1)

Join the Conversation

Related Stories
Twenty-Nine Palms Band disputes 'Donald Trump, You're Fired' story (10/21)
Twenty-Nine Palms Band wore 'Donald Trump, you're fired' shirts (10/18)
APTN links Donald Trump's 1993 smear to rebuff by California tribe (10/12)
Tribal leaders and advocates slam Trump as NCAI opens meeting (10/11)
Donald Trump hired firm to lobby for tribal casino deal in Florida (09/29)
Editorial: Donald Trump wages war on the Indian gaming industry (08/18)
Donald Trump paid $5M to settle hefty New Jersey casino tax bill (08/17)
Donald Trump tried to partner with Agua Caliente Band on casino (07/26)
Coquille Tribe faced threats for hosting Donald Trump supporters at casino (07/11)
Mainstream media tunes into Donald Trump's attacks on Indian gaming (07/04)
Donald Trump approved Indian gaming attack ads in New York (06/30)
Dean Obeidallah: Donald Trump's smears go back to the first Americans (06/02)
Donald Trump claims 'Jack Abrahamoff scandal' proves he was right about tribes (05/23)
Donald Trump's long and strained relationship with Indian gaming (05/19)
Donald Trump's long and strained relationship with Indian gaming (05/19)
Donald Trump tried to bully his way into New York tribe's casino bid (04/18)
Twenty-Nine Palms Band ended Donald Trump casino deal for $6M (03/21)
Donald Trump once claimed IGRA and tribal casinos were illegal (01/29)
Cowlitz Tribe turned down Donald Trump for gaming partnership (10/05)
Donald Trump wanted Jeb Bush to negotiate gaming compact (09/18)
Donald Trump spars with Jeb Bush over gaming bid in Florida (09/17)
Donald Trump tried to open casino with Seminole Tribe in Florida (09/02)
Donald Trump supported then opposed casino in Connecticut (08/21)
Column: Donald Trump's first big slur came at tribe's expense (08/10)
Donald Trump not shy with invoking race when it comes to tribes (07/31)