Briefly Noted: What's Up With Hunter Paying $50K Rent To The Big Guy?
We’ll keep this brief. During the Trump years Hunter Biden was paying about $50K/mo. to live in Zhou’s Delaware beach house for a period of nearly a year (11 mos.)—even though Zillow shows that the most any other house in the area rented for was $6K/mo. Hmmm. Those rental payments totaled about $550K to the “Big Guy”. There are other twists and turns that you can read about here:
Why Was Hunter Paying Joe Biden $50k Per Month To Rent House Where Classified Documents Found?
It doesn’t take much imagination to come up with a less than innocent explanation for this, although both the original NYPost article (Miranda Devine) and Zerohedge do exactly that—they leave it to your imagination. Yeah, I know. You’re probably wondering my Miranda Devine was checking this stuff out. Not to denigrate Miranda in any way, but maybe some knowledgeable person suggested to her that there was fruitful research to be conducted in that direction. Anyway …
Karl Denninger does nothing of the sort—leaves nothing to our imagination. Now, I’ll admit I have had nothing to do with corporate tax law since law school, so I’d be a fool to get down into those weeds. However, KD professes familiarity with S-Corp tax law:
Why is this relevant? Because it so happens …
Joe's tax returns from the subject year shows business income from pass-throughs (two S corps) which is perfectly legal. The tax returns do not show income in that classification from other sources; ergo, said "rental" has to be inside one of those two corporations or there is a serious felony involved, because that would be $600,000 of undeclared (and untaxed) income. Line 17 of Schedule 1 shows this and ties back from Schedule E, as it must. The other "business income or loss" from Schedule C is inconsequential in amount.
Again, I’m not going to pretend to have any tax law expertise. The problem appears to revolve around the fact that the house was not titled in either of the two S-Corps—it was titled to Zhou and Doc Jill. I’ll skip some of the detailed explanation and get to KD’s bottom line:
If the rental income isn't in those two S-Corps then either it never existed or Joe and Jill ripped off the government and committed tax fraud on the $600,000 paid by Hunter to Joe that is not declared anywhere in their state or federal tax returns.
In any event someone is hiding something in there. Whether this is more confabulation of a drug-addled Hunter or was disclosure of "10% for the big guy" kicked back to his father under the table and either improperly buried in an S-Corp "profit" that never owned the asset in question and thus can't do that or Joe and Jill got $600,000 worth of undeclared income and didn't pay taxes on it is now the question that demands an answer. After all tax cheating in that sort of size is serious business, felony-level serious, and is one of the few plausible explanations for what those documents disclose.
I'm not a CPA or Enrolled Agent; I paid both when I ran corporations, but I have run an S-Corp, an LLC and a C-Corp and signed tax returns listing income from all three over the years. I know what the law is in this regard because I respected and properly followed same.
I can’t vouch for this. Nevertheless, the circumstances—a son paying rent to a father at a rate 8x the going rental in the area—certainly invites inquiry. It sure looks like kicking back money to the Big Guy, whatever the percentage.
This looks like potentially VERY BIG TROUBLE for Zhou. Will he get the hints that are coming his way without letup?
Jonathan Turley
@JonathanTurley
...Just as the Committee's had a right to tax records and other records related to Trump, a court is likely to find a valid oversight demand in these visitor records to gauge the national security threat from mishandling classified records.
The House Oversight Committee is demanding the visitor logs for Biden's Delaware home. That could prove a major headache for the President. The Committee has a legitimate interest in the logs given the classified document controversy...
"Oh, what a tangled web we weave, when first we practice to deceive!" (Scott).
"Now is the winter of our discontent made glorious summer by this sun of a B...iden." (Richard III)'
Things are looking up, although the real pain is yet to come. After the economy collapses and our government almost ceases to exist this winter, "Happy days are here again." There once was a successful real estate guy in New York who warned his son not to get involved in Manhattan real estate. You can make good money in the outer boroughs, and why compete with the sharks? The son competed. He won. Now the minnows of Washington have taken on the son, and actually think they are winning. You don't start up with a Trump, or a Giuliani for that matter, if you can't finish the job.
"When you strike at a king, you must kill him." (Emerson) They have files and information on everyone, and can wait for the right moment and the best way to release any evidence they have. There are hundreds of lesser individuals, each with their own private grudge, who also have access to damaging information. Then there are foreign entities and Davos. So what is going on now? Who knows? The bottom line is our all-powerful people in charge, oh so confident, have enemies determined to take them down. If you can do something illegal to gain power, and a foreign entity is even paying you to do it, do not expect the foreign entity to show gratitude. If it comes out, you are in trouble and they will be proud they subverted you. Even better, if the system of government is in trouble this may be their desired result. Don't take anything I am saying as a fact. All I am pointing out is that the possibilities are endless.
After I wrote this, I saw Trump tweeted "I have info on everyone."