Trump Could Benefit Hugely From Tax Tweak in Senate Stimulus Bill
On Sunday, Trump Refused to Say Whether His Businesses Should Be Exempt from Stimulus Benefits: “Let’s just see what happens.”
[A] provision with bigger impact could be fixing a mistake in the 2017 tax law. Lawmakers then were trying to let companies deduct certain building-renovation costs immediately, instead of following the 15-year depreciation schedule that otherwise existed. […] And at first glance, this provision has nothing to do with the current crisis. But the Senate proposal would make the intended change count for 2018 and 2019, and the companies that would benefit most happen to be the ones hit hard now.
“It is liquidity in retail, restaurant and hotel space which are the industries that are hurting the most from the social distancing and mandatory store, restaurant closures,” said Rachelle Bernstein, tax counsel for the National Retail Federation, a trade group.
Companies in these industries could quickly amend their tax returns for both years, claim those one-time deductions and get refunds. Ms. Bernstein estimated potential deductions of at least $15 billion, which would translate into about $3 billion of refunds.
Reaction from Kyle Herrig, President of Accountable.US:
“The President made clear he wouldn’t turn down bailout money paid by the taxpayers actually suffering in this crisis. And now, his Senate backers are delivering his bailout on a silver platter. Any other responsible leader would be transparent about how this provision would benefit their businesses and reject it. Unfortunately, that’s not how Donald Trump operates.”
WHAT YOU NEED TO KNOW:
- In August 2018, Trump International Hotel & Tower New York Announced It Would Be Renovating Its “Guest Rooms, Suites And Common Spaces.”
- In June 2018, The Trump Ferry Point Golf Course Opened A New Clubhouse.