NEW YORK (AP) — The massive losses Donald Trump has claimed on his tax returns were reportedly due at least in part to the huge deductions he took against the income his businesses made before and after he became president.

A key question is whether those deductions reported by The New York Times were excessive and possibly illegal; they enabled Trump to avoid millions of dollars in taxes.

Trump reportedly wrote off millions of dollars for taxes and other expenses on real estate properties that he used personally but claimed were businesses or owned as an investment. He also deducted millions of dollars in unexplained consultants’ fees, including fees paid to his daughter Ivanka. Other notable deductions included $70,000 for hairstyling and expenses for Trump’s private aircraft. It would be up to the IRS, which is auditing some of Trump’s returns, to decide whether the deductions are legitimate.

According to

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President Donald Trump and Warren Buffett.
  • President Donald Trump claimed in 2016 that Warren Buffett had used past business losses to lower his federal income-tax bill.
  • The billionaire investor responded that he had paid federal income taxes every year since 1944 and that charitable contributions and state income taxes accounted for the vast majority of his deductions.
  • Trump paid only $750 in federal income taxes in 2016 and 2017, and none in 10 of the previous 15 years, The New York Times reported this week.
  • The president used $916 million in losses to reduce his tax payments from 1995 to 2005, claimed and received a $73 million tax refund that remains under IRS audit, and deducted costs such as hairstyling as business expenses, the report said.
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Warren Buffett may be feeling vindicated by the New York Times report

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