If the tax code allows deprecating real property, then it's not illegal at all.
I'm very curious to see what an actual CPA or tax attorney has to say about the released information. If Trumps losses were depreciation on real property, it's a non story as those losses only exist on paper. If he was actually incurring multi million dollar losses every year for ten years I'd like to know where that money came from.
Not an accountant, and I don't know the depreciation schedule and details for US commercial real estate tax law specifically, but I'm not the clueless fool he would take us all for.
For capital equipment, 15 years is a typical duration, as that's the useful life of the equipment.
Property should have a greater useful life, so a
smaller % of the overall cost is depreciated every year.
For a hypothetical and easy math, let's assume a 20 year period on his assets. That's 5% per year.
To write down $100M (on avg) in a year for depreciation, that translates to ~$2B worth of assets.
However, depreciation is just one item on the Profit and Loss statement.
He showed net loses Y/Y. That means on top he would have to also show no net profit, at the very best, from all his other business activities, year after year.
Basically massive funds tied up in depreciating, non-liquid assets, fueled by debt being serviced at high %, and failing to generate profit.
His cash flow statements must have been a bloody nightmare. Hence why he defaulted on his loans and had to forfeit so many assets to lenders at steep losses.
Considering he became a notorious, high risk lender, yet still had considerate real estate assets in desperate need of new cash flow, you gotta wonder where he could find sources of new funds... And why would they want to take the risk? Hmmmm.... Where does this all lead? Hmmmmm...