RE: If Trump had paid Cohen $140,000 for example, 10K for prepping the NDA and 130K to be paid to Daniels then the 10K could have been legitimately classed as legal fees.
OK, so the $130,000 should have been declared as WHAT exactly so that it would not be illegal?
“OK, so the $130,000 should have been declared as WHAT exactly so that it would not be illegal?”
Not sure, but given the fact that payments for NDAs exist, there is presumably some standard way of categorizing those payments.
OK, so the $130,000 should have been declared as WHAT exactly so that it would not be illegal?
In this case, to the Trump Organization would book the whole $140,000 charged to Legal Expense that rolls up to General Services and Administrative (GSA) in the general ledger. This would roll up to total Overhead Expenses on Trump's Income Statement and be deducted from his Revenues and Other Income to get his EBIT (Earnings Before Interest and Taxes).
To Cohen's law firm, he would book the $10,000 as earned income and pass the $130,000 to Stephanie Clifford.
To Clifford, she would report the $130,000 on her IRS-1040 as income for tax purposes.
-PJ