Tornado Alley (PROG)

[BullNBear52]

If he didn't have to pay personal income taxes because he directed funds to his foundation that should have been declared as income on his personal tax filings, well, dat's not good.

That is really immaterial. The only thing he'll be subject to is back taxes P&I and civil fines.

The big issue is the hit his shareholders in the casino's took while he was moving the losses from his LLCs and S corps onto to his personal tax return. Which is perfectly legal.

Meanwhile he was getting paid by the LLCs and S corps. It's a nice gig if you can find enough suckers to line up as investors.

Mark Cuban explained it quite well a while back.

http://www.businessinsider.com/mark-cuban-trump-is-smart-for-not-releasing-taxes-2016-9

As Cuban pointed out, with an S-corporation, "the entire financial performance of his company becomes part of his tax return."

According to the IRS, S-corporation shareholders must "report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates." And S-corporations are responsible "for tax on certain built-in gains and passive income at the entity level."

"His personal tax returns would show the financial performance of his development projects," Cuban wrote. "Not good given how much he gets sued."

"It may also explain why reducing pass-through taxes is important to him," he continued. "I say 'may' because taxes are only paid if he makes a profit."

Cuban is no fool and I'm sure he has himself set up the same way as owner of the Mavericks.