So, basically, Reid invested $400k in a property in 1998, donated it to a partnership in 2001, the partnership got the land rezoned, and in 2004, the property was sold for an amount that earned Reid $1.1 million. That is not that unusual, folks. Properties can double in 6 years, and zoning changes can add to the value, especially if the architectural plans are already completed, and the project just needs to be built.
This deal is worthy of further investigation, but based on what is known, Reid only gets a slap on the wrist for failing to report properly, not jail time for corruptly accepting unearned monies.
No mention in the article on whether the $1.1 million sale was properly reported to the IRS as a $700,000 capital gain (or whether Reid paid Bush's reduced 15 percent capital gains tax rate on it instead of the 20 percent that Reid voted for). More facts may change things, obviously, but don't get too excited yet.
According to the story posted at Drudge, he didn't just neglect to report. He lied to Congress and to the IRS.
Couple of things here. the use of that word "DONATED". I'd buy that. Only it was "donated" to this LLC partnership, now was it? When you "donate" something it becomes, well, DONATED. You don't get a 1.1 million dollar profit on something you DONATED! I donate to Goodwill all the time. A few years later the Goodwill does not come back and give me profit money on my old dining room furniture.
And you said there is no indication that zoning authorities were influenced in any way. Hey, did you READ the thing? I'll allow as there are many players in this thing what with that corrupt zoning commission and those developers. Not to mention that most amazing land swap of Lake Tahoe land for prime Las Vegas area real estate.
Here's what happened: Reid and his buddies knew that with Las Vegas growing-and don't forget Reid was head of the Casino gaming poobah thing so we can assume he'd have influence on this kind of thing-the land on the outskirts that Reid bought for 400K would go up in value. So they bought the land, buried the deal in some LLC with absolutely NO record that Reid had an interest in this LLC.
Reid was paying the property tax in some fashion right along although...WHY? After all, he "donated" the land to the LLC? Then Reid makes a profit from the LLC to which he DONATED the land? Bullshit. This was a carefully crafted way of funnelling a big profit to Reid.
It's that little manner of the DONATED land that's going to get him. Not reporting this matter to the Senate, and IRS perhaps, is also a factor.
This is no little thing here.
Another Killjoy who has to look at facts before jumping to conclusions.
"So, basically, Reid invested $400k in a property in 1998, donated it to a partnership in 2001, the partnership got the land rezoned, and in 2004, the property was sold for an amount that earned Reid $1.1 million. That is not that unusual, folks."
If he donated the property, which I would presume is the same as selling the property to the company (minus tax advantages), he loses ownership. If he's not a listed partner in the company, how is he eligible for profit?
And what did other partners in the company gain from the sale?