(CTN NEWS) – Trump’s Financial Fraud case, according to James, is one in which he and his business were acting solely on their own and not as part of a syndicate. As a result of the lawsuit, it may draw attention to the problem of tax breaks for conservation easements as a whole.
Former President Trump’s Financial Fraud has been charged with tax gaming that produced millions of dollars in fraudulent tax breaks and has long been under the scrutiny of the IRS and lawmakers.
Progress on putting an end to it, however, has been slow. According to a lawsuit filed Wednesday by New York Attorney General Letitia James against Trump, his family members and his business conglomerate, Trump artificially inflated land appraisals.
In exchange for keeping some land at his properties off-limits to development, he gets substantial tax breaks.
According to Adam Looney, an economist at the Brookings Institution who has studied the issue, there are many ways to abuse the conservation easement deduction.
“Conservation easements,” as they are known in tax jargon, are perfectly legal and are supported by conservationists who see them as a valuable tool in preserving open space for wildlife and protecting wetlands.
In spite of this, unscrupulous landowners and investors can take advantage of the system. The IRS and lawmakers from both parties have been trying to curb fraud, focusing mostly on “syndicated” easement deals, in which promoters, investors, and appraisers work together to profit from the tax deduction.
The technology has been weaponized for widespread distribution through syndicated easements .A wealthy individual could achieve the same result without paying the middleman. “He has claimed conservation easements on several of his properties.
The suit focused on two locations – the Trump National Golf Club in Los Angeles County and James’ Seven Springs estate in Westchester County, N.Y.
“Trump and his business manipulated appraisals with respect to both conservation easements in order to inflate their value,” says the lawsuit.
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