McCains Defaulted On Home Taxes For Last Four Years, Newsweek Reports

** UPDATE BELOW **

Newsweek is set to publish a highly embarrassing report on Sen. John McCain, revealing that the McCains have failed to pay taxes on their beach-front condo in La Jolla, California, for the last four years and are currently in default, The Huffington Post has learned.

Under California law, once a residential property is in default for five years, it can be sold at a tax sale to recover the unpaid taxes for the taxpayers.

The McCains own at least seven homes through a variety of trusts and corporations controlled by Cindy McCain.

UPDATE: Newsweek's story is now online. The report notes that the McCains paid the bulk of their back taxes yesterday, but continue to owe additional taxes:

When you're poor, it can be hard to pay the bills. When you're rich, it's hard to keep track of all the bills that need paying. It's a lesson Cindy McCain learned the hard way when NEWSWEEK raised questions about an overdue property-tax bill on a La Jolla, Calif., property owned by a trust that she oversees. Mrs. McCain is a beer heiress with an estimated $100 million fortune and, along with her husband, she owns at least seven properties, including condos in California and Arizona. [...]

Shortly after NEWSWEEK inquired about the matter, the McCain aide e-mailed a receipt dated Friday, June 27, confirming payment by the trust to San Diego County in the amount of $6,744.42. County officials say the trust still owes an additional $1,742 for this year, an amount that is overdue and will go into default July 1. Told of the outstanding $1,742, the aide said: "The trust has paid all bills shown owing as of today and will pay all other bills due."

Comments

[prattvictory]

I wonder if the McCain's had the same real estate agent as San Diegan Randy Cunningham? Seems like the assessed value is artificially low. Did they buy it from one of his Keating 5 connections?

If I didn't pay my property taxes for three years do you think someone might have started to foreclose? Might some of those good Republicans in the San Diego Mayor's office gotten on the phone and told him to pay his bill?

[txdemjen]

Am I the only one who wants to know how 3 years of taxes on a beach-front home in La Jolla, CA only amounts to $6,744.42? Huh?

[mntnguy]

exactly i live in San Diego, Ca in a very modest condo in downtown purchase price 355,000 and my taxes are way more than that for 3 years

[wdw101]

yes you are

[vassyuta]

no, you're not. we're all wondering.

[astheworldturns]

Property that has value of around 200,000 is taxed at that rate. Bought a while back and with no improvements it could have had that tax rate for a number of years.

[Ibackobama]

I too wonder at that, I live in a very modest 1800 sq ft home in Texas and my taxes are almost that much for ONE YEAR! And after the first year of default it would be $6000 including penalties after July.

[AtlantaBlueNProud]

Nothing like the "rich getting richer'...­..like oil will be around 200 bucks a barrel by the time Bush leaves office...b­ut hey , the guys got to have some income for retirement. The McBushes just want an early start is all.

[nancytheragingliberal]

So, why is this not on the TV, 24/7?

[wdw101]

because tax was paid on friday

[mccabe49]

they only paid them after Newaweek revealed they were in default. You rightwingers, you have an excuse for everything your little "hero" politicians do

[catzoned]

Maybe it will show up on one one of those silly celebrity shows. Cindy is a member of good standing in the botox club, right?

[Redrover666]

It's nice to see that the only criticism you can conjure regarding our next first lady, are base, criticisms of her body and appearance. Nice to know that you belong to the party of inclusion and would never tolerate creepy sexist blather.

[jspivey]

Because John McCain himself has nothing to do with it? Because the property is owned by Cindy's family trust? Because he has never lived there, or -- possibly -- never even visited it? Because the entire story is based on a miscommunication between a bank and a local town tax collector?

[keepemhonest]

1. Did the McCain's fraudulently claim, on IRS Form 1041, those taxes were paid when in fact, the McCain's were in DEFAULT for the last 4 years?
and
2. Why is the Tax Liability on that ocean front property in LaJolla so low?

* Cindy McCain OVERSEES the Trust. Cindy McCain. Meaning Cindy McCain MUST, BY LAW, FILE and SIGN HER NAME to IRS Form 1041 annually as part of her annual personal taxes.

** If you're the Trustee (Cindy) or administrator of a trust (Cindy) BY LAW you will need to prepare and file Form 1041 and the associated Schedule K-1 forms for each of the Trust's beneficiaries. Each beneficiary will need a Schedule K-1 for use in preparing his own Form 1040.

** So, whether John McCain or the elderly, or both, are the beneficiary of the Trust they will need a to file Schedule K-1 for preparing their OWN Form 1040.

Some posters on this board remind me of those Bush 25% Club folks ... you know that 25% of the population that support Bush.

FYI: "DOW Jones has worst June (2008) since the Great Depression" -- that, according to: ALL news agencies & publications that follow the stock market ... anyone encouraged by Bush Economics?

John McCain is no different than George W. Bush -- Bush has ruined the US economy & McCain intends to follow the same Bush Economic disaster that has pushed the Stock Market into the worst June since the Great D

[juangault]

that is a very low tax payment for La Jolla. But we all know how the rich love to dodge paying their share.

[bmsrosmuc]

forth day that the msm has continued to show their hypocrisy in their choice to not cover this story. How many times did were hear about John Edwards wealth, Al Franken's tax debt? Seems strange that this is being ignored by their coverage of teflon John!

[EarthToZoey]

All politics aside-- filthy rich people are heeeelarious!

I worked my way through college working in the collections department for AMEX. I cannot tell you how many insanely wealthy people would miss paying their account to the point of us nearly having to hunt them down. And I can also not begin to count how many of them blamed the mistake on an 'assistant' or an 'accountant'.

I suppose when you have oodles of money, you get caught up in spending it so much that you can't bother to balance your account!

[hrb266]

Bob Barr '08

[SharonB]

Now, doing investigative reporting on this make a lot more sense than reporting on Wesley Clark's criticizism of McCain.

What on earth is going on with this?

[Opus007]

What a joke! If this had been the Obama the media would be running the story on a continuous loop. And if Michelle Obama was addicted to drugs and stealing from her own foundation- it would be all over.

The media is corrupt!

[GiannaX]

Amazing isn't it? I'm sure if the Obama's missed a payment on their Target card, it would be 'BREAKING NEWS" in the MSM for the next month!

[Yuma]

24/7 for 3weeks for sure!

[emmaspeaks]

Bingo! They say Obama gets the good press. Not true! He just doesn't advertise the negative. McCain only reiterates what Obama says is ok. Obama is running the show.

[TJoad]

MSM reactions (fueled by right-wing perpetual hate-machine propaganda):

Barack Obama didn’t wear a flag pin.
MSM reaction: Oh, the Horror!

Barack Obama says working class may feel bitter over economic conditions. MSM reaction: He’s a condescending Elitist! He’s got nothing in common with working people!

Michele Obama says she’s really proud of America for first time.
MSM reaction: She’s an Ungrateful, Rude Angry Black Woman with Bad Attitude!

John and Cindy McCain own 7 homes and fail to pay taxes for 4 years on their $1.5 million CA beachfront condo.
MSM reaction: Yaaaawwwwnnn. Whaaaatever. Hey, isn’t that the place he had us over for that barbecue and orgy? Let’s take up a collection to help the old guy pay those gosh awful taxes!

[larryfishkorn]

Cindy will cater it.

[K-Dog76]

I just want to say I love how many posts I read about the Republican Attack Machine, only to find the Democratic Attack Machine alive and well at the HuffPost.

[SharonB]

You say that like it is a bad thing.

[lizr]

LOL :)

[Quaoar]

If you don't like it you can always go back to Free Republic or WorldNetDaily.

[wdw101]

Wow, Can i join in. I am good with machines

[Redrover666]

What an absurdly pathetic effort to smear someone. Nearly 2500 angry, outraged comments most of which aren't based on having even read the article.

If this is the kind of "CHANGE" you folks stand for, then you are the very worst sorts of hypocrites.

This is a link that I and any other rational, fair minded person ought to immediately chain email to as many people as possible.

You people consistently like to characterize yourselves as intelligent, educated and fair minded. You are pathetic, ignorant and blindly and oafishly partisan.

Anyway, time to go do a bit of fly fishing before dark.

[SuburbanMalcontent]

Hear that noise? It's the crickets chirping inside your empty head. You make no sense whatsoever. Deny and deflect. It's all you righties no how to do. Oh no! Look behind you! There's a "darky" standing nearby! Better go run and hide at your fishin' hole.

[Redrover666]

Dumber than a box of rocks. How do you get through the day? It must be the pictures on the cash register keys at McDonald's.

[JessWonderin]

Ok, rich folks, own 7 or 8 houses and for five or six years, forgets to pay taxes . . . no big deal, do it al the time myself . . .

anyway, time to do a bit before dark . . ..

[Redrover666]

Read the article sparky. You can read can't you?

[lizr]

Yawwwwwwww­wwwwwwwwww­wwn.

[Redrover666]

I take that as bored agreement with my characterization of turds like you.

[Texocratic]

Now Im no real estate attorney, but with the assumed losses of real estate value in Cali, I wonder if anyone could benefit from a home like this going to tax sale. If this house is fully owned, without a mortgage (as it must be), I wonder if there would be a benefit to the cost of a write off as a total loss (based off original purchase of the house, unless there are loans held against it) vs the repurchase at a tax sale/auction and the profits therein? Anyone savy to Cali real estate law got any ideas on how this would work? One more year of noone finding this out, and someone could have had this house at what one would assume as a huge discount..­..

[lizr]

they just spaced out the taxes.

More money than sense, my mom used to say.

[basta]

According to the Newsweek article, one year of taxes on this beach front property in one of the most exclusive areas in California is $1,742 . WTF??? I pay twice that for a shack in Oakland.

Maybe they bought it cheap thirty years ago and because of Prop. 13 it stays low, but still, those taxes wouldn't pay my power bills for the year.

[biglover]

Yeah - good ole Prop 13. Put on the ballot by those ever-hating taxes republicans. The state has gone down hill ever since.

[PoppyPiru]

I agree. I got behind one year on my property taxes in California. Boy, did that cost me. The penalties and interest doubled my taxes in one year.

I was paying $1600 in taxes per year on a $100,000 house that I owned in Southern Cal for at least ten years. If I had defaulted on my taxes for 4 years I would guess my back taxes would be around $12,800 at least.

La Jolla is the richest areas in San Diego County. What gives?

[Yuma]

I pay $6400 per year and they don't do $hit for me and I am so far away from any beaches.

[lizr]

How the rich stay rich :)

ON the other hand, we have those kinds of property taxes here on Big Island.

[jspivey]

Maybe the tax base in the area where the condo is is enhanced by the presence of one or more large corporations. Situations like that go a long way towards reducing property taxes for the individual home owner.