Trump moves trademarks to Delaware holding company
DOVER (AP) — Donald Trump has transferred more than 110 registered or pending trademarks to a Delaware holding company, a move that could enable him to lower his income taxes.
It’s not clear how much income the Republican presidential candidate makes from the transferred trademarks, but he has attributed much of his net worth to the value of his name as a brand, and estimated that his intellectual properties were worth more than $3.3 billion in a Federal Election Commission filing released last year.
The News Journal reports that Trump transferred the trademarks to DTTM Operations LLC, and describes the tax advantages such “passive investment companies” can provide.
When these companies charge their parent company a royalty for using the trademark, the parent company then deducts the royalty payment as a business expense. Also, since Delaware doesn’t tax these payments, the parent company is able to reduce its tax burden in both states.
According the U.S. Patent and Trademark Office, the transferred brands include Donald Trump Model Management, Donald Trump Golf Links, Donald Trump the Fragrance, Trump Tower, Trump National Golf Club, Trumptini and Mar-a-Lago.
Trump campaign spokeswoman Hope Hicks told the newspaper she had no comment on the transfers.