He will sign. 1/23

In 1998, I was the tax lawyer representing Conseco in a joint venture with the Trump Organization to buy the General Motors Building. 2/23

Conseco put up 99.9% of the capital, Trump put up 0.1% of the capital, and Lehman Brothers loaned the rest. 3/23

The joint venture agreement was very straightforward. Income and deductions were based on capital contributions. Everything was agreed quickly by the lawyers. 4/23

However, on the day before signing, we were told that Mr. Trump would be arriving at 10pm at our offices to negotiate the deal (which had already been negotiated). 5/23

He arrives with an entourage. A podium had been set up for him at the front of a long table in a conference room. 6/23

He asks for some minor corporate changes. But then he demands that he get all of the depreciation deductions. 7/23

Having negotiated, he put on his coat and left. 8/23

All of the lawyers look at each other. The general counsel of Conseco said, “We put up 99.9% of the money; we get 99.9% of the depreciation deductions.” Trump’s lawyers say, “Don’t worry, he’ll sign.” I go home to sleep. 9/23

The next morning my corporate partner and Trump’s corporate lawyer take the joint venture agreement to Trump Tower for Trump’s signature. I’m in my office. 10/23

The phone rings. It’s my corporate partner. “Mr. Trump wants to speak to you.” 11/23

“Yes, Mr. Trump,” I say. 12/23

“Were you there last night?” he asks. 13/23

“Yes, Mr. Trump, I was.” 14/23

“Did you hear me last night?” he asks. 15/23

“Yes, Mr. Trump, I did.” I reply. 16/23

“So, does this agreement give me the depreciation deductions?” he asks. 17/23

“No, Mr. Trump, it does not.” 18/23

He’s angry now. “You were there last night, you heard me, and this agreement does not give me the depreciation deductions? Why not?!” 19/23

I know that the agreement could have been structured for Trump to get depreciation deductions (if he was willing to provide a “bottom guarantee”). But it wasn’t, so I answer truthfully: “Mr. Trump, the law does not permit you to get depreciation deductions.” 20/23

He’s furious now. “The law does not permit me to get depreciation deductions?!” 21/23

“That’s right, Mr. Trump.” 22/23

He slams down the phone and signs the agreement. 23/23