Foley paid $673 in taxes in 2013 Malloy campaign criticizes GOP challenger's use of loopholes

Tom Foley, Republican candidate for governor of Connecticut Tom Foley, Republican candidate for governor of Connecticut Photo: Cathy Zuraw Buy photo Photo: Cathy Zuraw Image 1 of / 1 Caption Close Foley paid $673 in taxes in 2013 1 / 1 Back to Gallery

HARTFORD -- Tom Foley's house may look like the Hogwarts castle and he has a stable of classic cars, but the private investor had an adjusted gross income of negative $111,000 in 2013, and paid just $673 in taxes, according to partial copies of his federal tax returns.

The Republican gubernatorial candidate on Friday allowed reporters to peek at the two-page cover of his recently filed federal returns, for which he was granted an extension until this week.

Along with the 2010, 2011 and 2012 reports to the Internal Revenue Service released on Sept. 26, the tax summary hints at the potential boom-and-bust life of a millionaire private investor.

The filing, released to reporters without comment Friday, includes $1,962 in taxable interest, dividends of $54,857 and $30,245 in capital gains. But Foley, who files separately from his wife, Leslie Fahrenkopf Foley, claimed a $67,679 loss in real estate, a nearly $50,000 loss in other income and $80,487 in alimony to his first wife.

Reporters were not allowed to copy the two-page tax return. Foley still has not released his state tax returns for the last four years.

Malloy's campaign immediately criticized Foley for allegedly gaming the tax system and being out of touch with mainstream Connecticut voters.

"Tom Foley owns a multi-million-dollar mansion, two British fighter jets and a $5 million yacht, yet takes advantage of tax loopholes middle-class families can only dream about, allowing him to pay no income taxes for three years," said Mark Bergman, senior adviser for Malloy's campaign. "Tom Foley lives in a different world than most Connecticut working and middle-class families."

The documents again raised the issue of tax loopholes that seem carved out for the rich, which is emerging as a major theme in the rematch between Foley and Gov. Dannel P. Malloy.

In 2011 and 2012 Foley paid a total federal tax of about $1,000, after claiming major financial losses.

He reported a negative-$65,705 income in 2011 and $20,462 in 2012, the previous records showed.

In 2011 he claimed a $2.8 million capital gain, offset by a $2.8 million capital loss.

The tax returns of Malloy and his wife, Cathy, also raised questions.

The Malloys paid about $198,000 in federal taxes during the four-year period from 2010 through 2013, plus about $58,400 in state taxes.

But they claimed only $1,795 rental income on their former Stamford home, which at the time generated $200,000 in rental income. They took deductions on improvements, property taxes and other items on the converted barn in the city's Shippan section.

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