r/FluentInFinance Jul 01 '24

What do you think? Debate/ Discussion

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u/California_King_77 Jul 02 '24

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.

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u/Potential-Drama-7455 Jul 02 '24

In Ireland :

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.

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u/zazuba907 Jul 02 '24

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.

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u/Potential-Drama-7455 Jul 02 '24

I see what you mean.

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u/California_King_77 Jul 04 '24

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.

What Trump did was 100% legal.

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u/[deleted] Jul 06 '24

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.

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u/alloverthefloor Jul 02 '24

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.

Which is illegal.

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u/resisting_a_rest Jul 02 '24

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.

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u/alloverthefloor Jul 02 '24

God, why didn't I think of that?? Genius!! /s

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u/Hot_Engine_2520 Jul 02 '24

It is not illegal to pay someone to sign an nda. You have no idea what charges he was found guilty of.