NYT: Trump had $ 287 million in debt mostly related to canceled Chicago project

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President TrumpDonald Trump Maria Bartiromo defends the report: “Continue to ransack me, I will continue to tell the truth” has had $ 287 million in debt canceled over the past decade, most of which was related to its Trump International Hotel & Tower in Chicago, The New York Times reported Tuesday.

The Times, citing the federal tax records it obtained, reported that lenders have written off hundreds of millions of debts since 2010 that Trump has not repaid, amounting to most of what Trump owed.

Its lenders, Deutsche Bank and hedge fund Fortress Investment Group, have given Trump leeway, including more time to repay his loans, the newspaper reported, citing information from tax returns, interviews. and other documents.

New York Attorney General Letitia James (D) ‘s investigation into Trump’s affairs includes questions about canceled debts, the Times noted, as the Internal Revenue Service requires that canceled debts be taxed as income.

But the newspaper reports that Trump’s tax records appear to show that the current president has paid almost no federal income tax on canceled debts in part due to large losses at other businesses.

Alan Garten, chief legal officer for the Trump Organization, told The Times that the company and Trump had properly paid all taxes owed on the canceled debt.

“These are all arm’s length transactions that were voluntarily entered into between sophisticated parties many years ago in the aftermath of the 2008 global financial crisis and the ensuing collapse of real estate markets,” said Garten.

The Hill has contacted the Trump Organization for comment.

Deutsche Bank has agreed to lend Trump’s LLC $ 640 million for the Chicago project, including $ 40 million personally guaranteed by Trump. He also borrowed $ 130 million from Fortress Investment Group as part of a deal with double-digit interest rate and an additional charge of $ 49 million on loan repayment, the Times reported.

The agreements were signed in 2005 and originally scheduled for May 2008, when Trump expected to have generated enough money from the property to repay the loans. But construction delays and the lack of sales of condos and real estate space meant that the company did not have the money on time.

As the financial crisis began to develop, Trump requested and was granted six months for the repayment of the Deutsche Bank loan, and when that deadline came, the bank refused a future postponement. At that time, Trump owed Deutsche Bank about $ 334 million with interest and Fortress about $ 130 million without interest, the Times reported.

Trump has filed a lawsuit against the lenders, claiming that Deutsche Bank was engaging in “predatory lending practices”. Deutsche Bank has filed its own complaint against the future president, demanding repayment of the loans. The two parties settled privately in 2010.

Trump’s federal tax returns and loan documents filed in Cook County, Ill., Appear to show he was no longer held responsible for the payment of some $ 270 million, the Times found.

Fortress originally expected to receive more than $ 300 million from Trump’s business, but instead settled for $ 48 million, people familiar with the deal told the newspaper.

The Times reported that the canceled debts were on federal income tax returns, with Trump’s 401 Mezz Venture reporting about $ 181 million in canceled debt in 2010, and DJT Holdings, the Chicago project’s parent company, saying 105 million dollars canceled in 2012.

Steven Schlesinger, a lawyer who represented the Trump Organization in the Chicago legal battle, told the newspaper that the 2010 settlement earned Trump more money to pay what he owed. The Trump Organization paid about $ 235 million of the Deutsche Bank loan in 2012.

But the current president paid the last $ 99 million to the bank via other loans from Deutsche Bank that he agreed to personally guarantee in 2012. The loans will be due in 2023 and 2024.

The article is the latest from The Times and includes information on Trump’s tax returns.

Democratic presidential rival Joe bidenJoe Biden Widening Child Tax Credit Could Lift 4 Million Children Out of Poverty: Analysis Maria Bartiromo defends report: “Keep on getting dirty, I’ll keep telling the truth” The memo: the center strikes back MORE renewed his call during last week’s debate for Trump to release his tax returns after The Times reported that Trump has a Chinese bank account. A lawyer for the Trump Organization said the account was still open but its offices in China had been inactive since 2015.

The newspaper also reported last month that Trump paid only $ 750 in federal income tax in 2016 and 2017. The president said in the debate that he had “prepaid” tens of millions of dollars, suggesting that the $ 750 was “application fees.”

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