In a bold play, former President Donald Trump may clinch a colossal $323 million in federal income-tax deductions by pledging to preserve his Blue Monster golf course in Florida, according to a federal tax form unearthed from his company's records. This intriguing move not only sheds light on Trump's post-White House financial maneuvers but also stirs controversy around his exploitation of the conservation easement tax break.
Trump's endeavor to shield the Blue Monster golf course at Doral unfolds as one of his most extensive applications of the conservation easement tax break. Spanning a sprawling 184 acres in Miami, this transaction dwarfs Trump's prior conservation deals in California and New York by over tenfold. The potential tax savings, estimated at nearly $120 million, could signify one of the most significant conservation easements in history.
Unlike his contemporaries, Trump adamantly withholds his tax returns, leaving a veil over his financial affairs. While glimpses of his financial history reveal years of negative income and modest payments, the full scope remains elusive, adding an air of mystery to his economic playbook.
Russell Shay, a seasoned consultant and former Land Trust Alliance executive, expresses astonishment at the scale of Trump's latest maneuver. "This is larger than anything I've seen," Shay remarks, emphasizing the unprecedented nature of Trump's utilization of the conservation easement tax break.
In a carefully orchestrated move, Trump's company donates the development rights for Doral's Blue Monster golf course to the City of Doral, eliciting a unanimous vote from the city council. The binding contract imposes restrictions, preventing new structures above 25 feet or exceeding a total of 10,000 square feet. Trump retains ownership, but the public gains free access for limited hiking and birdwatching, ensuring the course's preservation.
The conservation easement proves to be the linchpin preventing Trump from converting the course into a resort development. The agreement mandates public access, offering a stark contrast to a potential scenario where the iconic landscape transforms into a private enterprise. This strategic move safeguards the Blue Monster's essence while navigating the intricacies of tax benefits.
The IRS, known for rigorous audits on easement donations, may subject Trump's move to scrutiny. Challenging appraisals and litigating in the U.S. Tax Court are not uncommon practices. As Trump tees up for potential tax savings, the IRS looms as a formidable adversary, ensuring that every stroke is scrutinized.
The conservation easement slices the property's value at Doral from $668 million to $345 million, paving the way for a substantial $323 million potential deduction. The intricacies of federal tax law come into play, with confidential IRS forms becoming public records due to the city's involvement in accepting the easement.
Trump strategically times his donation, aligning it with the sale of his Washington hotel earlier in the year, estimated at a $100 million profit. With several years of negative income from 2015 to 2020, Trump leverages the conservation easement to offset potential taxes against his income for 2022.
As Trump navigates the terrain of tax breaks and conservation easements, the broader financial narrative unfolds. With the IRS as a formidable adversary and public interest intensifying, the saga of Trump's financial maneuvers continues to be a riveting spectacle, inviting speculation and scrutiny alike.
