What is Donald Trump’s real net worth in 2021?
Donald Trump is arguably the richest person to ever live in the White House, but getting an exact number on his net worth? It is a delicate business.
Part of the challenge is that the sprawling company he still owns, The Trump Organization, is a private entity that is not required to publish financial statements like a publicly traded company would be. While NBC News reported in 2015 that Trump claimed in a press release that he was worth over $ 10 billion, this is widely seen as more bravado than reality.
The New York Times released information from Trump’s income tax returns on September 27, 2020, but which did not provide any details about his net worth because tax returns do not disclose this measure.
Estimates from several outside sources put Trump’s net worth, while still substantial, at a much lower value. Perhaps the most cited assessment is that of Forbes, who in April 2020 valued the former president’s net worth at $ 2.1 billion.This figure reflects a significant drop in his fortune estimated at $ 3.1 billion a month earlier, before COVID-19 decimates the commercial real estate and hospitality sectors.
Key points to remember
- The former president still owns the Trump Organization.
- Trump is required to submit a financial reporting document each year, although those numbers are presented in wide ranges and do not give an accurate picture of his net worth.
- In April 2020, Forbes estimated Trump’s net worth, that is, assets minus liabilities, at $ 2.1 billion. That’s about $ 1 billion less than their valuation at the start of the year.
Trump has notoriously refused to release his tax returns, making it very difficult to determine his income, as the tax returns do not contain a person’s net worth.Former President Donald Trump completed the annual financial disclosure forms that presidents are required to submit through the US Office of Government Ethics.?? ??
However, it is virtually impossible to determine Trump’s net worth based on his government’s financial disclosures. The most recent disclosure, which was for the year 2019 and was released in July 2020, listed extremely wide ranges for its property values. For example, many of his properties were listed as being “over $ 50 million”.This is compounded by the fact that these estimates are self-reported, unaudited, and conflict with figures the Trump Organization has reported to state and local tax authorities.?? ?? ??
When it comes to Donald Trump’s real wealth, approximations of outlets such as Forbes are probably the closest we can get. The finance-focused media company certainly doesn’t have specific values for every property owned by the Trump organization, currently run by sons Donald Jr. and Eric. However, his team is looking at transaction data and stock values of related companies to see where those numbers likely lie.?? ??
In April, Forbes estimated Trump’s net worth at around $ 2.1 billion, reflecting a sudden drop in value brought on by the pandemic. But even in the pre-coronavirus era, Forbes placed his overall value at $ 3.1 billion, well below what Trump suggested he possessed when running for office in 2015.It’s remarkably close to another source, the Bloomberg Billionaire’s Index, which placed the former president’s net worth ahead of the coronavirus at $ 2.97 billion.??
While the bulk of Trump’s assets reside in commercial real estate holdings, he has interests in a number of different industries. Here is a breakdown of Forbes‘s most recent estimate.
Commercial real estate – $ 1.2 billion
Much of Trump’s wealth is tied to a handful of mixed-use buildings in Manhattan, including 125,000 square feet of commercial real estate in the usually busy Midtown neighborhood. With the coronavirus keeping potential buyers home, the value of these properties has taken a hard hit. Commercial properties that were worth around $ 1.9 billion before the pandemic are now valued at $ 1.2 billion.?? ??
Residential real estate – $ 148 million
Trump’s vast real estate empire comprises approximately 500 residential units across the United States. While difficult to assess them with precision, Forbes lowered the valuation of these units from $ 235 million to $ 148 million this spring, in part due to the decline in the stock prices of publicly traded companies which operate in the same sector.
Hospitality – $ 38 million
Times have been tough for hoteliers across the country, and the Trump Organization is no exception. The company’s hotel holdings, including the Trump International Hotel down the street from the White House, are now valued at $ 38 million. Before COVID-19 took hold, the projected value was $ 107 million.
Hospitality and Management Licenses – $ 42 million
When you are as famous as Donald Trump, you don’t have to put money on the line to make real estate money. You can also allow your last name to other developers who want to stick it on their own buildings. In 2017, the Trump Organization had no less than 50 licensing or management agreements around the world.
Golf courses – $ 217 million
The Trump Organization owns a number of exclusive golf properties, from Colts Head, NJ, to Dubai.While players can still access the links on most of these courses, the high price of membership doesn’t make them recession-proof. Forbes puts their combined value at $ 217 million, up from $ 271 million before the coronavirus.
Other properties – $ 295 million
Some exclusive clubs of the president are resisting quite well, despite a faltering economy. “Mar-a-Lago is valued more as a billionaire’s trophy than as a running business, which appears to shield from the impact of the current recession,” writes Dan Alexander of Forbes.
Cash – $ 160 million
Among the funds of the rainy days, that of the former president is not too bad. Forbes comes close to the fact that Trump had $ 160 million in cash even before the health crisis. In a year when real estate values and stocks have been beaten, this is an asset class that has not lost value.??
The bottom line
Because he runs a complex private business, getting an accurate reading of Donald Trump’s net worth is a nearly impossible task. One thing is for sure, however: The former president’s past claims about his net worth, even in the pre-coronavirus era, appear to be largely inflated. A more recent analysis of Forbes puts his current fortune at just over $ 2 billion.