Anyone who has been in business understands (or should) amortization and depreciation. Trump many years ago took what would in my (or most people's standards) a tremendous loss of around nine hundred million dollars. If he did not make enough to cover that loss it could be written off against future earnings, or even retroactively for a certain number of years. There is nothing wrong with that but the media and of course Mrs. Clinton is using those numbers to make it look like he is cheating the system by not paying taxes. WRONG! Should his company build a huge building that building is depreciated over many years, taking that number also as an offset to earnings as it should. Any type loses that can be claimed should be. None of us who have deductions would decide to just forget it and not use the deductions unless we are mentally deficient. If a deduction or write off is legal it should be used. Cash flow is another issue but this post will be long enough as it is.
Let's use an example with much smaller numbers. Most of us can not think in terms of many billions of dollars in revenue so the nine hundred million seems unimaginable. When you have revenue in the billions nine hundred million is like a hundred thousand to us.
Let's say you earn fifty thousand dollars in a year and the same year you purchase a building worth one hundred thousand dollars. You had saved enough to buy it for cash but before you signed the insurance papers the building burned to the ground. The salvage value was nothing after the mandated clean-up.
Would you to write off the loss in the same year? Of course you can not because you only made fifty thousand and not all of that is pure income after allowable deductions and credits so you carry the loss forward and to a degree backward. Yes, this means for years you may pay no federal income tax and is that cheating the public? Not unless when you took the loss the taxpaying public covered it for you.
This entire issue is ridiculous and simply a manufactured issue to use in the election process. Am I fan of Trump? NO! Will I vote for him? YES! In no small part because of his opponent and the media using every underhanded trick in the book in order to get the same person in the White House that should be in the Big House. You can bet the Clintons have used every deduction and write off possible as they should have. Their income adjustments wouldn't have been as huge because they have never produced anything tangible, simply always being government employees paid by your tax dollars or making money through speeches.
It has been some years since I have owned businesses so I am not as up on tax law as I was at one time but this is just common sense. DON'T be fooled!
Ken