If Trump sells assets to pay for his civil fraud fine, he might have to pay capital gains tax.
If Donald Trump chooses to sell his assets to pay his civil fraud fine, he may face financial issues by accruing tax.
Trump has until March 25 to come up with a bond amount or the New York Attorney General could begin seizing some of his assets and properties after Judge Arthur Engoron ruled that Trump has to pay roughly $464 million (interest included) in penalties for fraud.
The February ruling stated that Trump and top executives at the Trump Organization inflated the value of his assets to obtain more favorable terms from lenders and insurers. The lawsuit, brought by New York AG Letitia James, initially sought $250 million in damages, but she later increased this figure to $370 million, plus interest.
This week, the former president’s legal team said paying the full civil fraud penalty would be “a practical impossibility,” leading to speculation that James could soon start seizing Trump properties or that Trump may be forced to sell off some of his real estate empire to pay the penalty.
Trump wrote that he now has “almost five hundred million dollars in cash” which he intended to use for his 2024 presidential campaign where he is currently the GOP’s presumptive nominee.
