The House Ways and Means Committee released former President Donald Trump’s tax returns for 2015 – 2020 on December 30, 2022 – see the returns in the Attachment E link here.
We wondered whether Trump claimed QSBS on any investment gains during these years?
Where to look? There are two key schedules where an individual taxpayer reports QSBS gains:
- Form 1040 – page 1, Capital gains
- Schedule D – “Capital Gains and Losses” – adjustments to capital gains are reported in column (g)
- Form 8949 – “Sales and Other Dispositions of Capital Assets” – specific gains or losses are reported and QSBS exclusions would be noted with the code letter “Q” in column (f)
So, what do Trump’s returns show:
- 2015 – ~$666k in long-term capital gains, but no QSBS adjustments claimed
- 2016 – ~$2.6M in long-term capital gains, but no QSBS adjustments claimed
- 2017 – ~$642k in long-term capital gains, but no QSBS adjustments claimed
- 2018 – no dispositions of potentially qualifying securities noted
- 2019 – no dispositions of potentially qualifying securities noted
- 2020 – no capital gains noted
Why didn’t Trump claim QSBS exclusions?
QSBS is to incentivize entrepreneurship and investments in early stage companies. Not claiming QSBS exclusions could indicate that the individual taxpayer simply did not have gains in qualified securities that they held for the at least 5 year holding period.
Maybe the Trumps simply don’t invest in many early stage companies.
Alternatively, maybe the Trumps missed claiming certain long-term gains as QSBS. Don’t let that happen to you, CapGains can help you monitor your portfolio for QSBS and benefit from this powerful tax incentive. Learn more here.
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.