TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Tuesday, November 8, 2016

Johnson:  Trump Bought The Law In Wilkie Farr's Tax Opinion

WTCalvin H. Johnson (Texas), Bought Law:

In 1991, Donald Trump bought a tax opinion from Wilkie Farr, a New York law firm, that allowed him to avoid tax on roughly a billion dollars of income. The legal theory behind the opinion is that there was no reduction of deductions if the banks traded their Trump-depleted debt for a partnership interest. The theory has neither the literal wording of the statute nor any court case on its said. Nonetheless the theory called Trump to keep a billion dollars of fake tax losses to shelter a billion dollars' of luxury consumption from tax when nothing was lost as a matter of economics.

We can state with a high degree of confidence that had the IRS challenged the theory in court, as its duty to God and Country required, it would have prevailed.

https://taxprof.typepad.com/taxprof_blog/2016/11/johnsontrump-bought-the-law-in-wilkie-farrs-tax-opinion.html

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Comments

"as its duty to God and Country required"

Can't wait for this day to be over.

Posted by: andy | Nov 8, 2016 12:02:10 PM