Tax Law
House Ways and Means Chairman Didn’t Report Villa Rental Income
Posted Sep 5, 2008, 05:51 am CST
By Debra Cassens Weiss
The chairman of the House Committee that writes the federal tax code failed to report more than $75,000 in rental income from a villa he owns in the Dominican Republic, the New York Times reports.
The sum represents the amount that U.S. Rep. Charles Rangel, D-N.Y., earned since he acquired the property in 1988, the story says. Rangel’s lawyer, Lanny Davis, said his client probably owes no federal income tax after deductions are taken for taxes and depreciation. But he said the congressman likely will owe back taxes to the state and city of New York.
Davis said Rangel would probably file amended tax returns and new congressional disclosure statements to reflect the income. Davis said his client did not realize the money had to be declared as income and his wife handles the family finances. The rental payments collected by the resort were used to defray the mortgage and were never sent to the Rangels, he said.
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