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2023-01-16 11:12 by Karl Denninger
in Flash , 1474 references
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Well now the classified document scandal has really blown up in Biden's face.

But even more-intriguing is that there is an apparent set of evidence of both hinky dealing and intentional cover-up to be found in Biden's tax returns and the revelation that Hunter was paying Joe $50,000 a month to rent a house that was worth a couple of million.

Hunter also claimed that said house was owned by him, but the tax and deed records say otherwise.  That, however, is Hunter's problem --  not Joe's.  Joe's tax return not only shows the property tax paid on the house it also deducts mortgage interest.  It's his house both by deed and by who's covering the mandatory bills.

Joe's tax returns from the subject year shows business income from pass-throughs (two S corps) which is perfectly legal.  The tax returns do not show income in that classification from other sources; ergo, said "rental" has to be inside one of those two corporations or there is a serious felony involved, because that would be $600,000 of undeclared (and untaxed) income.  Line 17 of Schedule 1 shows this and ties back from Schedule E, as it must.  The other "business income or loss" from Schedule C is inconsequential in amount.

But this leads to a very serious question: There's nothing wrong with an S corp owning property but does it not have to be titled into the corporation?  It wasn't; at all times material the house was owned by Jill and Joe Biden in their personal capacity.  It was not in a trust of some sort nor was it retitled into an S-corp as there's no record of either.  That seems rather hinky but perhaps not.  In any event rental property is very different than a personal residence in that with rental property there's depreciation and all other manner of things you can deduct that isn't true for a personal residence -- but if you convert it back to a personal residence that gets recaptured which is something I've warned other people to be careful of.

So let's see the records on those two S-Corps that the Bidens declared and paid taxes on during that year.  Is the rental income from Hunter in there, and if so, how does the S-Corp, which I remind as a corporation must keep formal books of account and not lie in any material respect account for income from an asset it does not own?

If the rental income isn't in those two S-Corps then either it never existed or Joe and Jill ripped off the government and committed tax fraud on the $600,000 paid by Hunter to Joe that is not declared anywhere in their state or federal tax returns.

In any event someone is hiding something in there.  Whether this is more confabulation of a drug-addled Hunter or was disclosure of "10% for the big guy" kicked back to his father under the table and either improperly buried in an S-Corp "profit" that never owned the asset in question and thus can't do that or Joe and Jill got $600,000 worth of undeclared income and didn't pay taxes on it is now the question that demands an answer.  After all tax cheating in that sort of size is serious business, felony-level serious, and is one of the few plausible explanations for what those documents disclose.

I'm not a CPA or Enrolled Agent; I paid both when I ran corporations, but I have run an S-Corp, an LLC and a C-Corp and signed tax returns listing income from all three over the years.  I know what the law is in this regard because I respected and properly followed same.

If I pulled something like this and attempted to claim 10x the reasonable and expected rate of rental income on a single house by running it through an S-corp I'd have federal and state tax people along with law enforcement crawling so far up my rectum I'd be able to taste it.

Well?

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