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Tax Avoidance



Jared Kushner Paid No Federal Income Tax for Years, Documents Suggest

Tax avoidance can take many different forms. In this case, it appears as though Kushner used a common method to avoid his federal taxes - reporting the depreciation of real estate assets. This "loss" is actually a bending of an assumption in the law. The law assumes that buildings depreciate over time, as assets acquire wear. However, many appreciate in value due to the nature of real estate. As a result, one can have buildings appreciating in the market, but can follow the law's assumptions of depreciation to report these "losses." The administration had recently revised tax laws to encourage such benefits to real estate investors - a move that should surprise no one. Another loophole used by developers such as Kushner include avoiding the capital gains taxes. This is done by selling their properties, but using the proceeds to purchase new properties, as long as its done within a certain time window.

Examples such as this illustrate a troubled tax system that is exploited by the wealthy, and recent news show no signs of this stopping within the current administration.


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