Donald Trump has no idea how to post bond in the fraud trialāand heās absolutely losing it.
In just shy of a week, Donald Trumpās $454 million judgment from his New York bank fraud trial will become collectible, either by way of liquid cash or financial assetsāand it has officially sent Trump into meltdown mode.
The notoriously sleep-deprived GOP presidential nominee spent the better part of Monday night shouting into the void about the massive, half-billion-dollar judgment and his apparentĀ inability to pay it off, bemoaning being required to follow the law before being allowed to appeal the case.
āI would be forced to mortgage or sell Great Assets, perhaps at Fire Sale prices, and if and when I win the Appeal, they would be gone. Does that make sense? WITCH HUNT. ELECTION INTERFERENCE!ā Trump posted Tuesday morning.
āI shouldnāt have to put up any money, being forced by the Corrupt Judge and AG, until the end of the appeal. Thatās the way system works!ā he added, forgetting that heās being held to the same standards as every private citizen.
The tax you pay is one the net gain, which is the amount realized less the base of the good (i.e., what you paid to acquire). Iām not a tax expert, and real estate can get really fucky with this stuff, but thatās my understanding of the fundamental rules for taxation.
ā¦
Iām not sure how to explain this any simpler.
My apologies, but if I tried again Iād just be repeating what Iāve just said.
Your explanation is wrong.
Here is an explanation of capital gains directly from the IRS:
https://www.irs.gov/taxtopics/tc409
The confusion is you think itās a āgainā only if sold for more than you paid, which isnāt true.
And having a loan doesnāt negate gains. Itās two separate things. Which is why this situation for trump is so crazy and his taxable income can balloon so much despite trump not getting any money.
I donāt think explaining more would help, but since you bothered to provide a link. I took the time to show you where you were confused.
It seems the confusion is that you think whatever the total amount the item sells for is a āgain.ā A gain is the profit - the difference between what you sell the asset for and your cost basis in the asset.
In your car example, the cost basis is 50000. If you then sell it for 10000, you then have a capital loss of 40000. You donāt pay taxes on the 10000 because it is not earned income and it is not a gain - itās part of your original capital. And you obviously donāt pay taxes on the 40k loss. And since it is a car, you canāt even deduct the loss.
If you sell the car for 55000, then you have a gain of 5000 (the difference between your cost basis of 50000 and what you sold it for). You are taxed on the capital gain of 5000, not on the entire 55000.