Chicago Unit Acquisition LLC is cited in the Mother Jones article as having more than a 50M loan to Donald Trump. Some of the article is speculation, it doesn’t cite any actual loan documents. http://www.motherjones.com/politics/2017/02/does-trump-have-mystery-creditor
It’s clear from public filings that Donald J Trump is the owner of Chicago Acquisition LLC. If the company owned by Donald Trump has forgiven to Donald Trump, there maybe taxable events. ( ie. recognizing a loss and income.) If the legal and tax advisers are suggesting treatment consistent with a 1099-C that most taxpayers get after getting credit card debt forgiven. Such information would be on Donald Trump’s income tax return, which has not been released.
Now, if there was a gentleman’s agreement that he wouldn’t repay the loan in the short term, would be it be more or less likely to recognized on his tax return? Would the loan be written down in value? Is he paying interest to his own LLC? Did the LLC buy the debt from another creditor? Are there loans to the LLC from other entities?These are all questions that can’t be answered. We don’t know anything about the loan, even the amount or repayment terms.
What the information filings and interviews have done is create an atmosphere of speculation that any conspiracy theory seems credible. Combined with the President’s own statements and his spokespeople’s statements that loosely correspond to even vague truthiness, who knows what is true or not. When I say true, I mean an actual shred of verifiable fact. The only thing that I can actually verify, is the fact that Donald Trump owns Chicago Unit Acquisition LLC.
It’s too bad that there doesn’t seem to be an independent audit of his financials, which would diagram out this information.
Now, his privately owned companies are not required to have audits in the same sense as publicly traded companies are required. (SEC regulations, Auditing Standards, and tradition.) However, it might be smart for him to authorize an independent auditing firm to verify the debts, assets, and equity of his firms. It would help remove speculation about his companies and possible potential conflicts of interest.
Until ownership and loan information becomes more transparent to the American people; Trump will be followed around by a giant dark cloud of conspiracy theories. His financial and legal advisers, probably very sharp business people, have created an evergreen political problem for him.
The combination of alternative facts, murky financial information, and incomplete sentences in political speeches are creating a credible environment for speculation and conspiracy theories.