Experts: Trump may be able to get $25 million tax write-off for Trump University settlement
WASHINGTON – Less than a week after agreeing to pay $25 million to settle three lawsuits against Trump University, experts are looking at the fine print of the deal.
Last week, President-elect Donald Trump agreed to settle three lawsuits, including two federal class-action cases against the program.
Trump University is the defunct, for-profit real estate seminar business Trump created in 2005. It promised to teach students investing techniques they could use to get rich on real estate, just like Trump.
“I am pleased that under the terms of this settlement, every victim will receive restitution and that Donald Trump will pay up to $1 million in penalties to the State of New York for violating state education laws. The victims of Trump University have waited years for today’s result and I am pleased that their patience — and persistence — will be rewarded by this $25 million settlement,” New York Attorney General Eric T. Schneiderman said in a statement.
According to Forbes, the settlement likely won’t hit Trump’s wallet as hard as it may seem.
Forbes claims that most business settlements are fully tax deductible, adding that the $1 million in penalties may be the only part that cannot be deducted.