Tax guy here. Depreciation is a Cool Si Tu Nas Pas De Roro Dans Ta Vie Alors Tu Nas Rien Shirt personal favorite of Trump (and most big businessmen). His tax reform included a provision allowing for a 100% bonus depreciation. Meaning that a business can essentially write off. Or expense 100% of the cost of an asset in the year of purchase rather than depreciate it over time. Which is the whole concept of depreciation to take the tax benefit over the useful life of the asset. There were already several mechanisms in the tax code for accelerating depreciation. Before Trump’s plan section 179 depreciation and limited bonus depreciation.
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I frankly don’t really care about Cool Si Tu Nas Pas De Roro Dans Ta Vie Alors Tu Nas Rien Shirt Trump’s business acumen. Big businesses can run consistent losses by expanding rapidly. And expensing costs upfront see Amazon’s $0 in tax paid for 2018. Even in the 80s and 90s as his brand was expanding. Trump was not building enough to be writing off billions due to depreciation alone. His interest expense was high, meaning much of his operating cash was likely coming from loans and not actual operating income. I’m sorry but that is a lot of text to just bull away from his income tax. You don’t need to see 1040, the data is here in the article, you don’t need to pretend it’s ok.
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