How Trump May Have Sidestepped Paying Taxes

All presidential nominees since 1976 have released their tax records, except for Donald Trump. The Republican presidential nominee has been evasive, claiming that an ongoing tax audit prevents him from sharing last year's tax return. Over the weekend The New York Times reported that Trump claimed a more than $900 million loss on his 1995 income tax returns in three states that could have allowed him to sidestep paying federal income taxes for nearly two decades. How is this possible? Kyle Pomerleau, Director of Federal Projects at the Tax Foundation in Washington, D.C. explains how carryforwards work and how Mr. Trump may have benefited. 

This article was written by a staff member of TheStreet.