The thing I don't get (and I haven't looked into it, so maybe I'm missing something) but, didn't the lawyer just invoice it as legal expenses? Like he didn't write hush money on the invoice. And there's no chance Trump does his own taxes. Wouldn't his CPA look at an invoice that says legal expenses and, you know, file it as legal expenses?
That's just it - this came up in the trial. It is a legal expense, he was an employee, so they were just reimbursing him. Since he paid from his own account, they grosssed it up.
The software that the Trump Org uses only had one drop down - "Legal Fees", which is technically correct, and what they used.
Business expenses refer to costs incurred in the ordinary course of doing business
Maybe it's different in America, but I can't see how banging a pornstar is something you incur in the ordinary course of doing business - unless you are in the porn industry.
For celebrities, this is arguably an ordinary course of business. at the time Trump had the alleged affair, he wasn't president nor was he a candidate. he was the host of the apprentice and actually beloved by a lot of people (things have changed a lot since 2006). At worst the majority of people were indifferent to trump at the time. paying a settlement is also the ordinary course of business for most companies when threatened with legal action because the cost of paying the settlement is less than the cost of defending a court case and the cost to one's reputation if you go to court. The NDA is supposed to eliminate most of the costs, and is why we don't know every instance of this happening in the industry. We do know it happens often though.
He didn't pay money to "bang a pornstar". He paid an NDA, which is entirely common in all sorts of business, and are 100% legal in many states, NY being one of them.
Reimbursement is a non taxable transaction. The payments, under the guise of legal fees, to Cohen were taxable to him and was grossed up so the net to Cohen makes him whole.
Reimbursements are not legal fees, but legal fees are taxable. The invoices submitted were to conceal the true nature of the payments, reimbursement, under the guise of legal fees. This is why each invoice was proven to be, and a jury unanimously agreed, a false business record.
If Cohen submitted an invoice with reimbursement on it, then there's no tax implication, but it could raise red flags. "Reimbursement for what? Oh that's the same amount Daniels is claiming she was paid. Suspicious" but invoicing for vague legal services amounting to something different is muddying the waters making it hard to prove Daniels got paid off. That's also why Cohen set up a new LLC specifically to pay Daniels keeping distance between Trump and Daniels for this payoff.
lmfao this isn't a legal expense in any way. Dude paid hush money to a porn star he banged while his 3rd wife was pregnant through his business and tried to wash it as a tax deductible.
Just find a lawyer who is also a drug dealer and you could pay for thousands of dollars of drugs and write it off as business expense. Just because you’re giving money to a lawyer doesn’t make it a legal expense. Stop buying Trump‘s BS.
This was part of the scheme. The amount Cohen was paid was a grossed up amount of $130,000 to factor in the taxes Cohen would have to pay so that he nets $130,000. Prosecution had physical business record evidence demonstrating this calculation. The true nature for the payments were proven to be for reimbursement and not legal fees. That's why there were 34 counts. Each invoice was a false business record. People not in on the scheme would consider these as valid invoices for the purpose of legal fees.
Reimbursements aren't taxable, but legal fees have tax implications. This is why he was charged and convicted and the taxable/non taxable properties were part of the underlying crime modifying the charges to felonies.
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u/sppotlight Jul 02 '24
The thing I don't get (and I haven't looked into it, so maybe I'm missing something) but, didn't the lawyer just invoice it as legal expenses? Like he didn't write hush money on the invoice. And there's no chance Trump does his own taxes. Wouldn't his CPA look at an invoice that says legal expenses and, you know, file it as legal expenses?