Trump's tax return information obtained by the New York Times shows that Trump was forgiven about $ 287 million (€ 244 million) in debt from its lenders.
The debts relate to a skyscraper Trump built in Chicago, for which he borrowed more than $ 700 million (€ 595 million) on behalf of his two companies.
The skyscraper, known as the Trump International Hotel and Tower, was completed in 2009 amid the financial crisis.
The original maturity of the loans was in May 2008. However, the construction of the skyscraper had suffered setbacks and the project had slowed down.
The financial crisis that began at the same time meant that Trump had not been able to sell enough million-dollar homes from his skyscraper, with the money he was supposed to pay off his loan.
Trump asked his main lender, Deutsche Bank, for more payment and got six months.
He then applied for more time, during which the bank refused.
At the time, Trump still owed nearly half a billion to Deutche Bank and the investment company Fortress.
Trump stepped in and sued his long-time partner Deutsche Bank.
He accused the bank of accelerating the financial crisis, which he considered had negatively affected his business, and which would have justified his right to more payment time.
At the same time, he defaulted on his repayment.
Lenders could have seized Trump’s skyscraper, but they didn’t.
The legal process for the unfinished building would have been too long and cumbersome to complete.
Instead, in 2010, Deutsche Bank, Fortress and Trump reached an agreement, the details of which were not disclosed to the public.
However, from Trump’s tax return data obtained by the New York Times, it can be deduced what happened.
Trump forgave about $ 287 million in loans.
According to the newspaper, only a few were able to enjoy such an arrangement, especially without the corporate reorganization procedure.
Deutsche Bank vowed never to cooperate with Trump again, but Trump’s son-in-law Jared Kushner reorganized Trump into a bank customer through his relationship.
Trump International Hotel and Tower photographed in Chicago for graduation in 2009.Photo: Curtis Waltz
Debts forgiven under U.S. law are treated as taxable income for federal taxation purposes.
However, Trump paid virtually no tax on the entire amount
Read more: NOW gets hands on Trump's tax return data from two decades - revealed years of tax evasion and hundreds of millions of dollars in debt
Operating losses are tax deductible, and Trump said he suffered losses so large that they offset his debt relief, which was recorded as income, for several years to come.
For example, in 2014, he did not pay federal income tax at all and in 2016 and 2017 only $ 750 (€ 637).
New York Chancellor of Justice Letitia James is currently investigating whether Trump’s tax planning has been in accordance with the law.
Trump himself has called the New York Times revelations fake news.