How did Trump make $550 million in the White House?

A Forbes analysis reveals the profits of Trump's private businesses. The 45th US President refused to give up running his businesses when he entered the White House in 2017, which helped him earn more during his presidency than any other president in US history.

As Donald Trump seeks to retake the White House, some key questions about his first term remain unanswered, such as how much profit he made from the private businesses he continued to run after assuming the presidency.

However, some details have emerged - such as how much revenue his businesses generated, how much taxable income he reported, and even rough estimates of the profits his businesses made in certain years. Previously, no one had done an in-depth accounting of how much operating profits his businesses reaped during his four years as president. But now there is.

An analysis of a trove of tax returns, financial disclosures, bond filings, credit reports and internal records, many of which emerged after the former president left the White House, shows that Trump's businesses earned a total of about $550 million from 2017 to 2020. For Trump, who earned more before becoming president, the money was crucial because it allowed him to pay off debts, improve properties, feed his children and live like a king while governing the country.

2017: First Year of Income in the White House

Soon after winning the 2016 election, Trump agreed to pay a $25 million settlement to resolve allegations that his for-profit education business, Trump University, had engaged in fraud, which reduced his estimated operating profits for the year by 15%. The good news? He can list the $25 million loss from Trump University on his tax return.

2018: No name, no problem

Politics has driven his partners away from the Trump brand, but two office buildings that don’t bear Trump’s name, 1290 Avenue of the Americas in New York City and 555 California Street in San Francisco, have barely been affected, even though Trump owns 30% of them. In 2018, his share of profits from the two buildings reached about $55 million, more than a third of his estimated operating profits.

2019: Weak links

Trump’s business stabilized in the middle of his presidency, but there are still weak links, especially in liberal-leaning urban centers. In New York City, revenue at Trump Tower and 40 Wall Street fell, and at Trump’s hotel in Chicago, a slim profit turned into a loss. In Washington, the Trump International Hotel also suffered heavy losses.

2020: The COVID-19 Crisis

Trump’s six hotels lost an estimated $23 million in total in 2020, nearly enough to wipe out their $30 million in profits from 2017 to 2019. Meanwhile, his real estate licensing and property management businesses also shrank, with operating profits shrinking to $4.5 million in 2020 from an estimated $29 million in 2017. Office buildings served as short-term saviors as large tenants with long-term leases continued to pay rent.

This article is translated from

https://www.forbes.com/sites/danalexander/2024/08/05/how-donald-trump-earned-550-million -in-the-white-house/

Text: Dan Alexander 

Translation: Vivia