The main takeaway from a New York Times report on Trump’s tax records is that Trump claims to be a billionaire, yet in some years pays little or nothing in federal income taxes. Trump uses many legal tax credits to lower his bill, but may also break the law by exaggerating his business expenses or mischaracterizing payouts to family members. There’s also an unstated revelation in the Times expose: Somebody close to Trump turned on him, leaking financial information that could be both politically damaging and legally treacherous. The Times isn’t saying where it got the detailed information on nearly 20 years of Trump tax returns, and isn’t even releasing the documents, to protect the source. But it seems obvious that a Trump insider is trying to damage him, flouting Trump’s famous demand for loyalty from anybody who works with him. Trump is in a close reelection race, and it’s possible he could beat Democrat Joe Biden once the ballots are counted in November. At the same time, however, a more ominous scenario is unfolding. Trump’s notoriety as a combative president has brought unprecedented scrutiny to a family business that for decades was a black box, its inner workings secret. Trump is now facing more legal scrutiny than ever, including criminal probes into possible felonies. There are even signs his supposedly iron grip on the Republican Party could shatter if there’s an opportunity to dispatch Trump and move on. First, the legal cases. The Manhattan district attorney is investigating Trump and his businesses for various types of fraud, probably including some of the tax-avoidance strategies described in a 2018 New York Times feature. The DA investigation is secret, so it’s not clear what the exact focus is. But city, state and federal prosecutors have an obligation to investigate possible crimes if they become aware of them, and the intense scrutiny of Trump’s finances since he became president may have surfaced plenty of trouble. Trump’s former lawyer, Michael Cohen, went to jail in part for his role facilitating a campaign-finance felony: the hush-money payments to Stormy Daniels and Karen McDougal. Trump signed the checks, meaning he’s at least as complicit as Cohen. The New York State attorney general is mounting a separate investigation into whether Trump has misstated asset values to lower his tax payments or defraud lenders or insurers. The New York AG initiated this probe after Cohen testified before Congress in 2019 and accused Trump of fraud. Cohen might seem like an old story at this point, but the information he revealed after the FBI raided his office in 2018 could fuel investigations into Trump for years, and possibly lead to convictions. It’s obviously tricky to investigate a sitting president, one reason the federal Justice Dept. has had no apparent role in probing Trump since William Barr became attorney general in 2019. But Trump won’t be president forever, and federal investigators could join the city and state probes of Trump at some point. The Justice Department’s Southern District of New York led the Cohen prosecution, which culminated in Cohen’s 2018 guilty plea on eight criminal counts. If Cohen provided incriminating information on Trump as part of that case, it would be logical for the Justice Dept. to pick up the probe once Trump is no longer president and certain legal privileges of the office expire. All of this comes as Trump’s businesses are apparently under mounting financial pressure. According to the latest Times report, most of Trump’s properties lose money, and he owes $421 million in loans, much of that due in the next few years. Trump’s hotels, resorts and golf courses are struggling amid a travel rout, and while the presidency has elevated Trump’s visibility, his unpopularity may have harmed the brand. For more on this article please visit: https://finance.yahoo.com/news/trumpworld-is-imploding-155716171.html Subscribe to Yahoo Finance: https://yhoo.it/2fGu5Bb About Yahoo Finance: At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. About Yahoo Finance Premium: With a subscription to Yahoo Finance Premium, get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more. To learn more about Yahoo Finance Premium please visit: https://yhoo.it/33jXYBp Connect with Yahoo Finance: Get the latest news: https://yhoo.it/2fGu5Bb Find Yahoo Finance on Facebook: http://bit.ly/2A9u5Zq Follow Yahoo Finance on Twitter: http://bit.ly/2LMgloP Follow Yahoo Finance on Instagram: http://bit.ly/2LOpNYz Follow Cashay.com Follow Yahoo Finance Premium on Twitter: https://bit.ly/3hhcnmV