this post was submitted on 19 Mar 2024
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Donald Trump has no idea how to post bond in the fraud trial—and he’s absolutely losing it.

In just shy of a week, Donald Trump’s $454 million judgment from his New York bank fraud trial will become collectible, either by way of liquid cash or financial assets—and it has officially sent Trump into meltdown mode.

The notoriously sleep-deprived GOP presidential nominee spent the better part of Monday night shouting into the void about the massive, half-billion-dollar judgment and his apparent inability to pay it off, bemoaning being required to follow the law before being allowed to appeal the case.

“I would be forced to mortgage or sell Great Assets, perhaps at Fire Sale prices, and if and when I win the Appeal, they would be gone. Does that make sense? WITCH HUNT. ELECTION INTERFERENCE!” Trump posted Tuesday morning.

“I shouldn’t have to put up any money, being forced by the Corrupt Judge and AG, until the end of the appeal. That’s the way system works!” he added, forgetting that he’s being held to the same standards as every private citizen.

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[–] [email protected] 143 points 7 months ago (42 children)

Hopefully, during repossession, they count his obnoxious branding as negative value and underprice what is being auctioned.

[–] [email protected] 142 points 7 months ago (39 children)

From my understanding, it essentially ends up with bidding for assets to get to the amount needed. Whatever the resulting high bid ends up, is the amount for that asset. So if something is valued at $500M but sells for only $200M, it only counts as $200M toward the judgment. Basically, estimated value means nothing, only what someone actually pays for it.

[–] [email protected] 56 points 7 months ago* (last edited 7 months ago) (22 children)

So if something is valued at $500M but sells for only $200M, it only counts as $200M toward the judgment.

Kind of less, he's paying taxes on the sale too, because he's still selling it even tho he doesnt get to keep the money.

And when selling half a billion dollars of real estate, you're going to pay a lot of taxes even in America.

So the 200 million goes to the judgement, but he's paying 20-40% percent in state/federal/local taxes. And it's all gonna happen in the same calendar year while a shit ton of accountants are watching his every move.

He's going to end up having to sell a lot more than the judgement to pay his tax bill a year from now.

And that's not even getting into his loans.

  1. Value a building at 100 million when it's worth 50

  2. Borrow 70 million on property.

  3. Sells for 40 and the bank needs 30 still.

There's no way out, even if the bank forgives the remaining 30, that still counts as taxable income for trump, compounding the first issue. And in that scenario, $0 is going to judgement and trump still loses the property and they move on to seizing the next on the list. He gets zero gain from the sale, but it's still drives up taxable income for him personally

trump could conceivably have a billion dollar gross income in 2024, and be completely broke with hundreds of millions due in tax.

Which is just insane.

[–] [email protected] 9 points 7 months ago (2 children)

That’s not quite right.

If you buy something for 300m, with 200m in loans, and sell it for 250m, you pay the loan back first, and have 50m in losses. Your taxes go down.

He only pays tax on gains.

Remember the whole case is him inflating property value to get loans. Between the fire sale, and the bad loans, it’s very likely he has little to no equity. He could sell all he has and not have any money to pay the $500m (plus interest.) Which also means little to no tax burden.

[–] [email protected] 6 points 7 months ago (1 children)

But if he bought it for cheap, and got a loan on the property after the fact, or realistically, he held them for long enough then leveraged their new worth for other things, and hasn't paid any gains on the properties

[–] [email protected] 6 points 7 months ago

He was on trial for taking loans on fake gains.

[–] [email protected] 6 points 7 months ago

Right...

If he sells for less then he has a loan on, he still owes the money, and without the property as collateral, the lender is going to collect.

If they forgive the debt, that counts as earnings and is taxed.

So it would either force more sales to pay remaining loans, or it's forgiven and taxable income goes up

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