How Ivanka’s husband’s company got a $50 million tax deal: ‘They’re not going to have any problems’
By Jennifer Jacobs/Politico Ivanka Trump’s family business was not a “small” business when she and her husband were running the company, but that has changed.
In 2016, Ivanka Trump, then the president’s daughter and chief executive of the Trump Organization, made a $1.2 billion investment in a private equity firm that invested in the construction of the Mar-a-Lago Club in Florida.
In an interview with The Washington Post, Ivanka said that “the investment was a very small amount, and we were very happy with the result.”
But in December, a federal judge ruled against her in the case, arguing that the company’s private equity investors were not entitled to receive tax deductions for their investment.
In the court ruling, the judge cited a provision in the Internal Revenue Code that prohibits the use of private equity to raise capital to finance a business.
The ruling also stated that “tax benefits for private equity investments do not include any deduction for the investment.”
Ivanka said she did not know the exact nature of the investment until the judge issued his ruling.
She added that her father has a “big heart” and has “a very good track record of doing good things.”
A spokesperson for Ivanka’s company, which is run by her two adult sons, did not respond to a request for comment on the ruling.
According to a report by the New York Times, the investment was not intended to be an “unqualified profit-sharing” of the company.
It was only a way for Ivanka and her sons to “redirect the costs of their private equity and other investments into their businesses,” according to the report.
Ivanka and her children did not immediately respond to CNBC’s request for clarification on what the investment meant, and Ivanka did not disclose any information on the investment to the public.
The Times report cited unnamed sources who said the investment included money “for Ivanka’s private label line and a $20 million line of jewelry.”