Trump tax deductions involved in 2 NY fraud investigations

The probes, one of which is criminal and the other civil, examine millions in consulting fees paid to Ivanka Trump.

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Two investigations into President Donald Trump and his businesses have been expanded to include millions of dollars in write-offs.

The fraud probes in the state of New York, one of which is criminal and the other civil, reportedly include examining millions of dollars in “consulting fees,” some of which went to the president’s daughter, Ivanka Trump.

President Donald Trump speaks about Operation Warp Speed in the Rose Garden at the White House. The New York Times examined more than 20 years of Trump’s tax records, which revealed he’d paid “little to no federal income taxes in most years.” (Photo by Tasos Katopodis/Getty Images)

The New York Times examined more than 20 years of Trump’s tax records, which revealed he had paid “little to no federal income taxes in most years.”

The $750 Trump paid in income taxes one year became fodder for late-night show hosts and Twitter users.

It turns out Trump deducted $26 million in fees to “unidentified” consultants, including Ivanka Trump.

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“On a 2017 disclosure she filed when joining the White House as a presidential adviser, she reported receiving payments from a consulting company she co-owned, totaling $747,622, that exactly matched consulting fees claimed as tax deductions by the Trump Organization for hotel projects in Hawaii and Vancouver, British Columbia,” read the Times story.

Ivanka Trump was employed by the Trump Organization and also being treated as a consultant.

Alan Garten, the general counsel of the Trump Organization, called the investigation a “fishing expedition.”

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“Everything was done in strict compliance with applicable law and under the advice of counsel and tax experts,” he said. “All applicable taxes were paid, and no party received any undue benefit.”

The IRS does allow deductions for consultants if those fees are “ordinary and necessary” to running the business.

The criminal investigation into the president by Manhattan District Attorney Cy Vance Jr. has resulted in a lawsuit to block the official release of Trump’s tax returns and other financial records.

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That case will appear before the Supreme Court for a second time.

The investigation is focused on several potential financial crimes, including insurance and bank-related fraud, tax evasion and grand larceny.

The civil case, led by Attorney General Letitia James, is centered on the allegation that Trump has inflated his assets in financial statements to secure bank loans but understated them to avoid paying taxes.

The Trump family has called the probes a “continued political vendetta.”

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