Bailey releases tax returns
Wednesday, Sep 14, 2022 - Posted by Rich Miller
* NBC 5…
Bailey provided NBC 5 with a copy of the two-page income tax cover sheets for his last five years worth of returns.
According to those documents, his Adjusted Gross Income in 2017 was $1,776. The following year, it increased to $211,000. In 2019, it declined slightly to $189,000.
Amid the COVID pandemic, Bailey reported a loss of $164,000, while in 2021 he reported a loss of $99,000.
Bailey cited the purchase of new equipment for businesses for reported losses of income.
During those two years, ProPublica reported that Bailey received more than $570,000 in Paycheck Protection Program loans, and the Chicago Tribune reported that he received $280,000 from the U.S. Department of Agriculture.
So, he lost $164,000 in 2020 and then lost $99,000 in 2021. But he still had enough cash in 2021 to loan his campaign $150,000.
…Adding… Pritzker will release his tax returns when he files next month, the Sun-Times tells us…
Pritzker’s campaign offered praise for the governor’s rival for peeling back the curtain on his federal tax obligations but questioned why Bailey withheld the release of his state tax returns for the period.
“We’re glad to see Bailey releasing his federal returns,” Pritzker campaign spokeswoman Natalie Edelstein said. “We look forward to the release of his state returns, as the governor has done every year.”
- Local Person - Wednesday, Sep 14, 22 @ 6:11 pm:
And I’m the King of England
- Oswego Willy - Wednesday, Sep 14, 22 @ 6:12 pm:
===So, he lost $164,000 in 2020 and then lost $99,000 in 2021. But he still had enough cash in 2021 to loan his campaign $150,000.===
Good tax attorney, amirite?
===Bailey reported a loss of $164,000, while in 2021 he reported a loss of $99,000.===
Here Bailey complains about budgets he won’t for, because “as a business man, a farmer” it makes no sense?
Friend, you’re losing money, according to your own taxes… why would anyone listen to you when it comes to business?
- We’ll See - Wednesday, Sep 14, 22 @ 6:13 pm:
Farmers (and their accounts) sure know how to work the system. Please note, I’m from a farm family.
- fs - Wednesday, Sep 14, 22 @ 6:13 pm:
== his Adjusted Gross Income in 2017 was $1,776==
Sure it was. Did he claim Washington, Jefferson, and Franklin as dependents?
- Big Dipper - Wednesday, Sep 14, 22 @ 6:17 pm:
IRS might want to audit.
- Rudy’s teeth - Wednesday, Sep 14, 22 @ 6:30 pm:
Did Darren Bailey reach out to Tom DeVore for advice and counsel?
- 47th Ward - Wednesday, Sep 14, 22 @ 6:39 pm:
This is why Republicans are so adamantly opposed to hiring more IRS auditors.
Maybe he should use some of that Uihlein dough to pay back his loan?
- Ducky LaMoore - Wednesday, Sep 14, 22 @ 6:53 pm:
Farm taxes are an extremely funny thing. I know a farmer that never “turned a profit” for about 40 years. He still farms. And he still eats. He once told me, “the goal of farming is to pay no taxes.”
- Friendly Bob Adams - Wednesday, Sep 14, 22 @ 6:58 pm:
Ducky has it exactly right. No family farm has ever made a (taxable) profit.
Yet somehow their teenage kids all have their own trucks. Go figure.
- JS Mill - Wednesday, Sep 14, 22 @ 6:59 pm:
Bailey’s returns are likely legit and able to withstand an audit with little trouble. These returns are not uncommon for farmers. Most anything they spend money on can be a deduction (if it can be linked to the farm).
And they complain about pritzker. Lol.
- Bruce( no not him) - Wednesday, Sep 14, 22 @ 7:12 pm:
Farm taxes are unintelligible to non farmers.
I’m not sure if there is anything that is not deductible to a farmer.
== Yet somehow their teenage kids all have their own trucks. Go figure.==
Those aren’t the kids trucks, those are farm vehicles.
- 47th Ward - Wednesday, Sep 14, 22 @ 7:15 pm:
=== Those aren’t the kids trucks, those are farm vehicles.===
And the kids are sometimes also employees of the farm.
- ChicagoBars - Wednesday, Sep 14, 22 @ 7:55 pm:
Accelerated depreciation on farm equipment in play would be my guess.
https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-new-100-percent-depreciation
Could be wrong.
- Henry Francis - Wednesday, Sep 14, 22 @ 7:57 pm:
What about his trucking and excavation biz? And his school?
No dough there?
- JS Mill - Wednesday, Sep 14, 22 @ 8:46 pm:
Based on the taxes he does not pay I am not sure why bailey complains about taxes.
- Anonymous - Wednesday, Sep 14, 22 @ 10:01 pm:
It’s amazing Rich that you didn’t do your investigative on how deprecation works before you reported. Fairly typical of you liberal media types.
- Been There - Wednesday, Sep 14, 22 @ 10:18 pm:
====But he still had enough cash in 2021 to loan his campaign $150,000.====
As pretty much noted already, business and farm profit goes up and down depending on major purchases and depreciation, along with revenues that are dependent on crop prices. Along with shifting revenues between different fiscal years.
Also, he owns 12,000 acres. Even at a conservative estimate of $5,000 per acre that means he potentially has $60 million to borrow against depending on how much he already owes on it.
- JSI - Wednesday, Sep 14, 22 @ 10:24 pm:
I worked a campaign in Nebraska and several of the counties were amongst the poorest in the west. But everyone drove around $50,000 trucks. So weird how that happens
- OurMagician - Wednesday, Sep 14, 22 @ 10:27 pm:
2 whole pages-I’m sure the Schedule F was one of those pages.
Those 2 pages don’t begin to tell the story of his operation, every farmer should know that.
- Lurker - Wednesday, Sep 14, 22 @ 11:06 pm:
I’m not sure what happened in 2018 and 2019 but that tax accountant needed fired.
- Lance - Thursday, Sep 15, 22 @ 6:55 am:
Does this put any pressure on JB to release his taxes? Seems like this is just a part of a free media campaign for Bailey: (1) Move to Chicago, (2) Chicago News Conf on Crime, (3) Release Income Taxes…
- Cermak Dr. - Thursday, Sep 15, 22 @ 8:06 am:
Clearly this is another example of someone using the tax code for their benefit. If there is an issue with that maybe we should challenge the tax code.
I would also go as far as stating any good business person would use these same legal avenues to reduce their tax burden. I would be happy to address any questions on how using the tax system and tax forms works. The Schedule F is a very easy form to use for any farmer. In 2018 and 2019 many farmers sold their stored grain at very high prices.
- Occasional Quipper - Thursday, Sep 15, 22 @ 8:10 am:
I don’t understand why so many people make a big deal out of the taxes that business people pay. When you have a business you have good years and bad years and the tax laws allow you to declare losses and pay little to no taxes during bad years. If they do something illegal the IRS will catch up with them. If everything they do is legal, but you still don’t think it’s right, then write your legislators to have the tax laws changed.
- MisterJayEm - Thursday, Sep 15, 22 @ 8:22 am:
“It’s amazing Rich that you didn’t do your investigative on how deprecation works before you reported. Fairly typical of you liberal media types.”
1) Rich is under no obligation to somehow justify Bailey’s (-$164,000) + (-$99,000) = $150,000 campaign loan accounting.
2) If you could explain his accounting in a way that would be palatable to those of us who pay taxes year after year after year, you would have done so.
3) Rich isn’t part of the liberal media — Capitol Fax is a category of one.
– MrJM
- Huh? - Thursday, Sep 15, 22 @ 8:33 am:
Biggest legal tax dodge in the country is owning property. The depreciation deduction alone is huge. Add in purchases that can be attributed to the operation of the property are also deductible.
I used to own some rental property. If I wanted a new tool, I went out of my way to use it for some maintenance project and then deducted the cost on my taxes. Never had a net profit after deductions for property taxes, mortgage, insurance, depreciation, and maintenance.
- Cermak Dr. - Thursday, Sep 15, 22 @ 8:39 am:
I would be willing to bet most of us in Rich’s room don’t actually pay income taxes or very little income taxes. The way the tax code is designed is to help lower income and most family types. I see 90 percent of my clients pay zero taxes and many of the people have figured out they can use the Earned income tax credit to their benefit by only making the “sweet spot” 19k and getting 10-15k back. I bring this up because some farmers use this trick as well only depreciating certain equipment to get them to this sweet “spot also”. There are a million ways to take advantage of it. All I was saying is that its open for anyone with the right knowledge. Let me know if you need help with yours JM.
- Oswego Willy - Thursday, Sep 15, 22 @ 9:12 am:
===3) Rich isn’t part of the liberal media — Capitol Fax is a category of one.===
Likely the best comment today.
The projection of others to “lump” the blog and Rich is a “tell”
- Oswego Willy - Thursday, Sep 15, 22 @ 9:19 am:
===I would be willing to bet most of us in Rich’s room don’t actually pay income taxes or very little income taxes.===
It’s way too early to be this impaired.
You might want to sleep it off
===I see 90 percent of my clients pay zero taxes and many of the people have figured out they can use the Earned income tax credit to their benefit by only making the “sweet spot” 19k and getting 10-15k back.===
In the actual real world, that’s not a thing, maybe in the 1% or the 10% or the rural sect.
I do find it fascinating the Trumpkin/Rauner folks already are “fine” with Bailey’s taxes but there’s a forgetting that both Rauner and Pritzker, neither have full disclosure, and further, Bailey complaining about the taxes paid, it seems as though Bailey as gamed (legally) the system well enough that complaining seems very ridiculous to his own situation
- Oswego Willy - Thursday, Sep 15, 22 @ 9:30 am:
Trumpkin/Raunerite that tells me that Bailey paying so little on taxes AND then complains taxes are too high…
… understand your partisan yapping about taxes exposes that you likely have no idea how taxes work.
Can’t be both.
Bailey games (legally) a system to pay such low taxes, and taxes are too high, especially for farmers like Bailey.
Nope. Full stop.
- Cermak Dr. - Thursday, Sep 15, 22 @ 9:38 am:
RIF: Reading is fundamental. I didn’t say this??
“Bailey paying so little on taxes AND then complains taxes are too high”
“Bailey games (legally) a system to pay such low taxes, and taxes are too high, especially for farmers like Bailey”
- Oswego Willy - Thursday, Sep 15, 22 @ 9:42 am:
===I didn’t say this??===
Oh boy.. seriously?
===“Bailey paying so little on taxes AND then complains===
Etc.
Are you Darren Bailey?
Start the day over, unless you’re Darren Bailey.
- Excitable Boy - Thursday, Sep 15, 22 @ 9:58 am:
- I would be willing to bet most of us in Rich’s room don’t actually pay income taxes or very little income taxes. -
Exactly how much are you willing to bet? It’s not often I come across action this good, let me know and we’ll see if we can work something out.
- froganon - Thursday, Sep 15, 22 @ 10:25 am:
@Cermack-I would be willing to bet most of us in Rich’s room don’t actually pay income taxes or very little income taxes.-
Rich, can you set up a CapFax reader poll? Over the past three years, did you pay, on average, income taxes of:
$5,000.00 a year or less
$5,001.00 or more
I bet most of us paid more. We did and are glad to support the government services that pay for the services we depend on.
- Proud Sucker - Thursday, Sep 15, 22 @ 11:13 am:
FWIW, last year my wife and I paid $27K to the Feds. It was less in the years before the limitation of the SALT deduction. In fact, last year was the first time in 28 years we took the standard exemption.