Trump Tax 2
It sounds as if Trump’s $1 billion tax deduction was very unusual.  According to Fortune, it depended on his running his business as an S corporation, and on complex tax laws dealing with S corporation losses before 2002, when the provisions Trump used were eliminated.  They allowed an owner to personally take advantage of losses that were actually incurred by his creditors and suppliers.

I don’t understand the reasoning behind this provision, but apparently other people did not either, since it was later repealed.  I suppose it was something like bankruptcy law, allowing a company to stay in business that had incurred huge debts it could not pay.  Congress apparently decided (correctly) that this was too generous.

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