Deaton told the Globe in an interview that he has been granted an extension on his 2023 taxes and will share the return publicly when it is complete. He also said he would provide state-level tax returns, not all of which are currently posted on his website.
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In 2022 and 2021, Deaton’s law firm reported losses of about $38,000 and $807,000, respectively, figures he attributed to a downturn in business tied in part to the COVID-19 pandemic, which slowed court proceedings. As a personal injury attorney trying mesothelioma cases, Deaton said, he does not get paid until he secures money for his clients, and his income fluctuates significantly from year to year. In 2020, his law firm saw profits of $569,000, his tax return shows.
In 2021, Deaton reported a gross income of $5.2 million, most of that from capital gains on his investments. That year, he paid $1.1 million in taxes and donated $54 to charity, according to the returns. Deaton’s tax returns show that in recent years he has primarily drawn income from capital gains, alongside money he takes in from his law firm and the rental properties. The tax returns show he makes both short- and long-term trades in the stock market.
For many of the years for which he published tax returns, Deaton did not report drawing wages from his law firm at all. In some of those years, he said, he took distributions from the law firm, which do not have to be reported on personal tax returns.
Asked about his charitable contributions, Deaton said he has put hundreds of hours of pro bono legal work into lawsuits involving federal regulators and cryptocurrency companies. He has represented everyday people who own cryptocurrency in three lawsuits, including filing an amicus brief in a case between the Securities and Exchange Commission and Ripple Labs, one of the world’s most highly valued crypto companies.
“I did all of that for free, and also at the expense of my business,” Deaton said.
Deaton’s financial disclosure form — which lists asset values in ranges, not specific totals — reveals he is worth at least $18 million and potentially as much as $108 million; in an interview, Deaton told the Globe the true figure is at the bottom of that range, around $20 million. As much as 80 percent of his holdings are in Bitcoin, Deaton told the Globe.
He has said his interest in crypto stems from his childhood in poverty in Michigan, when minimum balance requirements and other fees made it impossible for his single mother to maintain a bank account. He saw crypto — essentially just a virtual form of money meant to avoid reliance on a bank or government — as a way to eliminate financial intermediaries. A vocal champion for cryptocurrency, Deaton has faulted Warren for her tough language on the industry; she is one of the loudest voices for regulation in Washington. Deaton has also benefitted from the support of an outside super PAC funded by crypto heavyweights, including the Winklevoss twins and the company Ripple Labs.
Like stocks, cryptocurrency investments are subject to capital gains tax, meaning tax is owed when digital assets are sold at a profit.
Deaton owns real estate in Rhode Island, Michigan, California, and Arizona, his financial disclosure shows. Deaton said he bought the building in Yuma, Ariz., decades ago when he was on active duty in the Marines; he paid off tax liens on the Michigan home to help out his younger sister, who lives there; and he owns the California home with one of his daughters, who lives in one unit while they rent out the other. Deaton still owns his home in Rhode Island, though he has put it on the market. His law firm is also based in Rhode Island, though Deaton has long represented Massachusetts clients.
Deaton is a newcomer to Massachusetts who moved just weeks before declaring his candidacy for Senate. He rented a home in Swansea, Mass., in late January before purchasing a home in Bolton in June. Deaton said he intends to stay in the house even if he does not win the election in November.
The candidate has loaned his campaign $1 million, campaign finance records show.
For her part, Warren is worth between $4 million and $9 million, according to her financial disclosure. Warren’s 2023 state and federal tax returns, which she made public in April, showed that she and her husband made $893,534 last year — a decrease from 2022, when they reported a total income of $1.14 million. The fluctuation was mostly due to a change in Warren’s book earnings; in 2022, she received the final installment of her advance for her 2021 books “Pinkie Promises” and “Persist.”
In 2023, the documents show, the couple paid $244,312 in taxes and donated $38,285 to charity, just under 5 percent of their taxable income.
Emma Platoff can be reached at [email protected]. Follow her @emmaplatoff.
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Publish date : 2024-09-25 22:44:00
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