Posted on 09/29/2016 8:26:22 AM PDT by MaxistheBest
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A lot of Trump critics have argued that he’s afraid that his tax returns will show he’s not a billionaire. Highly doubtful. First, Trump’s income will not directly correlate with the value of his assets, the debt on them or his stake in each. Second, FORBES has been scouring Trump’s fortune for 34 years. Sometimes he’s up, sometimes he down–and for much of the 1990s he was out of the three-comma club.
FORBES’ new investigation into Trump’s wealth pegs his fortune at $3.7 billion, down $800 million from a year ago. A softening of New York City’s real estate market, particularly in retail and office, where valuations are trending down, has diminished his estimated net worth. New information was also a factor. Of the 28 assets or asset classes scrutinized by FORBES, 18 declined in value, including his trademark Trump Tower on Manhattan’s Fifth Avenue, his downtown jewel 40 Wall Street and Mar-a-Lago, his private beachfront club in Palm Beach.
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13. Trump National Doral Miami Change vs. 2015: +$25 million
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14. Mar-A-Lago (Palm Beach, FLa.)
Type: Private club
What Trump Owns: 100%
Total Value: $150 million
Debt: $0
Net Value: $150 million
Change vs. 2015: -$50 million
Spanish for “Sea to Lake,” Mar-a-Lago is the former estate of Marjorie Merriweather Post, the socialite who inherited General Foods in 1914. Trump bought the 126-room property for $5 million in 1985 and turned it into a private club a decade later. ... The trophy property was the site of Trump and his third wife Melania’s 2005 wedding reception–which the Clintons famously attended. FORBES reduced its valuation after other top luxury properties, including a nearly 16-acre, 33-bedroom compound down the road, struggled to sell at a higher price.
(Excerpt) Read more at forbes.com ...
1. Forbes decided that the "Trump" brand has 0 - zero value.
2. They chose a large residence to run a value comp as if any property with the same area would equate in value.
3. They totally disregard the "National Historic Landmark" rating on the property
4. They failed to even mention that Mar-A-Largo is an income property and generated $8.6 million in profit in the first 10 months of 2016. (the fiscal year ends in Sept for the property)
5. They used the sale of the single residence property as proof because it didn't sell for...get this...more than Mar-A-Largo. Why would it! There is no other property on Palm Beach that has sold or is available that compares to Mar-A-Largo.
The expected $10 million profit for 2016 is a 100% jump in profit year over year from 2014-2015
They say the property is worth $50 million less than last year. If anything, it is worth $50 million more!
He’s broke, that is why he’s running. Not.
Look for the long knives to be out.
Trump is taking down their golden palace...
They have their globalist system all set up, and they can’t stand the idea this guy is going to take an axe to it.
And if he does, there will be Donald Turmps pop un in a number of nations doing the same things there.
They are literally shaking in their boots.
There’s a country to save. I could care less what Mr. Trump is worth as long as he stops Hillary and Obama.
Trump should start saying, I am poor like you.
So running for office has been a distraction that has cost him, personally, a Billion dollars. Not a limb or certainly not life like a soldier risks but a billion dollars is quite a “sacrifice” wouldn’t you say?
See how easy it is to spin libtards BS?
Only $3.7 billion?
Heck, the Clintons made half a billion in just 10 years - on Government salaries at that!
A billion here and a billion there and pretty soon you are talking about a lot of money. Suffice it to say, Trump is very rich. How rich is like arguing about how many angels can fit on the head of a pin.
I’d like to know where Forbes is getting valuations on his properties...especially the ones he has no debt on. If they’re looking at tax appraisals, Trump himself may have filed paperwork to argue for a lower valuation. I know I would if I owned a multi-million dollar property in NYC.
In the case of Forbes, it is less dishonesty than differing ideas on how to value wealth. This is a long standing dispute between Trump and Forbes. They both simply make different assumptions about the value of various assets.
This is fundamentally a financial theology argument. Identifying the value of large real estate assets that are not for sale is difficult. Particularly for unique properties.
You start with the original purchase price (factual), add in the price of improvements (factual), profits (factual), then try to decide the value of the subjective aspects: appeal to customers, perceived status, possible future sale price, value to customers of improvements, goodwill, brand prestige, etc....
These are all subjective numbers. Until and unless a Mar-A-Largo is sold, you cannot have a firm value of the property. Value is set by the purchaser, not the seller.
Trump has very diverse real estate holdings that are inside corporations and carried at historical cost basis or book value, not fair market value.
I’ve been a courtroom expert witness on this topic and find that people don’t understand these concepts.
Fair Market Value is best as it represents what it is worth if sold today....
Historical Cost is the original purchase price paid which could have been many years ago, plus capital improvements.
Book Value is Historical cost less Accumulated Depreciation on the property.
By playing with definitions the values could be billions of dollars difference.
Real estate is very subjective, appraisals are worthless
It is only worth what someone else is willing to pay for it
Tax assessors seem to forget that. They are good at putting bogus numbers to property to jack up your taxes
After the 2008 housing bust, a few local banks were left holding dozens of lots each...and they successfully appealed the valuations. I’ve helped others appeal based on use, as opposed to zoning.
Some appeals are worth the effort.
I am 76.
I am retired.
My Soc Sec income is less than $15,000 per year.
I don’t even have to file a tax return.
My NET WORTH is OVER $350,000.
I own my property-—5.58 acres set up for horses/vehicles/ trailers/horses/tack/appliances/furniture/books/electronic equipment/and every other thing on this property.
Soooooo- MY INCOME TAX RETURN TELLS YOU NOTHING!!!!!!
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