Culture of Corruption: Charlie's Angels

Interest Was Waived for Rangel on Loan for Villa

Representative Charles B. Rangel paid no interest for more than a decade on a mortgage extended to him to buy a villa at a beachfront resort in the Dominican Republic, according to Mr. Rangel’s lawyer and records from the resort.

...On Friday, The New York Times reported that Mr. Rangel, chairman of the House Ways and Means Committee, had earned more than $75,000 in rent on the vacation home since 1988, and according to his lawyers probably owed back taxes to New York State and New York City.

Mr. Rangel’s lawyer, Lanny Davis, said that the congressman’s accountant believed that Mr. Rangel would not owe federal taxes on the unreported income because the income would be offset by a deduction for depreciation and a credit for the taxes the resort owner paid to the Dominican government on the rental income.

"Probably" owed back taxes. "Believed" that it needn't be reported because it would be offset by deductions. Heh. Remember to tell that to the IRS auditors that when they come to visit you about your unreported income..."I didn't think you had to report it, if it was overseas and out of your sight!"

After all, why should the Chairmen of the Ways and Means Committee have to stay even remotely current on tax laws regarding rental properties? Just an oversight, I'm sure, as he otherwise seems to be rather canny about the rental property market...

For Rangel, Four Rent-Stabilized Apartments

While aggressive evictions are reducing the number of rent-stabilized apartments in New York, Representative Charles B. Rangel is enjoying four of them, including three adjacent units on the 16th floor overlooking Upper Manhattan in a building owned by one of New York’s premier real estate developers.

Mr. Rangel, the powerful Democrat who is chairman of the House Ways and Means Committee, uses his fourth apartment, six floors below, as a campaign office, despite state and city regulations that require rent-stabilized apartments to be used as a primary residence.

Mr. Rangel, who has a net worth of $566,000 to $1.2 million, according to Congressional disclosure records, paid a total rent of $3,894 monthly in 2007 for the four apartments at Lenox Terrace, a 1,700-unit luxury development of six towers, with doormen, that is described in real estate publications as Harlem’s most prestigious address.

Minimum estimated combined current market rents for the four apartments are $7630/month, for a net monthly benefit to Mr. Rangel of $3736, or an annual benefit of $44,832 (ab)using laws meant to help provide affordable housing to low-income groups. Nope, nothing to see here, just poor Charlie getting by on that measly Congressional salary...with a little help from his friends. Move On, folks....