President Trump paid $38 million in taxes in 2005 on an income of more than $150 million, a senior White House official confirmed Tuesday night.
That rare acknowledgement came in anticipation of a report by MSNBC host Rachel Maddow, who purported to have copies of Trump's tax returns from 11 years ago. The White House official spoke on condition of anonymity to discuss a sensitive financial matter.
What we've got is from 2005... the President's 1040 form... details to come tonight 9PM ET, MSNBC.— Rachel Maddow MSNBC (@maddow) March 15, 2017
Trump defied decades of tradition during the 2016 presidential campaign in refusing to voluntarily release his tax returns, which would shed light on the size and breadth of a sprawling real estate and entertainment empire he says is worth $10 billion.
Maddow said she had two pages of Trump's Form 1040 from 2005, which she obtained from financial journalist and Trump biographer David Cay Johnston. "I got them in the mail. They came in over the transom," he told Maddow. It is illegal for the Internal Revenue Service to disclose a taxpayer's returns, but the First Amendment protects journalists who disclose tax information they obtain from an outside source.
The joint tax return with his wife Melania shows earned income of $998,599, with most of his income coming from $67.8 million in rents and royalties, $42.4 million in business income, $32.2 million in capital gains and $9.4 million in interest.
But he also claimed $103.2 million in unspecified business losses.
His itemized deductions were more than $17 million — but without a more detailed copy of the return it's impossible to know how much of those deductions were from charitable contributions or state and local taxes. He did disclose $23,940 in taxes paid in foreign countries.
Those deductions would have allowed him to pay just $5.3 million in federal income taxes that year if not for a quirk of the tax code called the alternative minimum tax, which targets high earners with big exemptions.
With the AMT, Trump ended up owing more than he had withheld, meaning he had to pay nearly $2.3 million in additional taxes with his return. The return appears to suggest he also paid penalties and interest for under-withholding, but the return does not identify how much.
Previously, the only Trump tax returns publicly known were state tax returns from 1995 showing he lost more than $913 million — a figure that would allow him to potentially take a deduction for losses for years. Those returns were obtained by The New York Times in October.
But the few pages of tax returns leaked so far shows the bottom lines of his financials for two years a decade apart — and without the schedules that would detail the sources of that income. And while a legally required financial disclosure statement discloses Trump's holdings in more than 500 different ventures, that document gives only a broad outline of his financial interests.
More than 1 million people have signed a petition on the White House web site calling on Trump to release his tax returns. But Trump has been dismissive of the issue, saying in early January that "the only ones who care about tax returns are reporters."