Update 2: This just in: The “other side” article linked to below appears to be altogether mistaken. Evidence indicates that Senator Reid did receive the entire purchase price of the land ($400,000) from the LLC in return for selling it to the LLC; his failure to report the transaction was no mere technicality. Since Senator Reid was completely compensated for the land when he sold it to the LLC, the $1.1 million recently paid Senator Reid by the LLC after the LLC sold it was 100% profit. Thus, Senator Reid does appear to be liable for tithing on $1.1 million.

Update 1: The other side of the story makes the claim that this is a hatchet job by trying to make it appear that a transfer of assets to an LLC is not a sale and by ignoring the fact that Reid did not report the handsome profit that the LLC paid to him after selling it. Also, apparently Senator Reid would be liable for tithing on no more than $700,000.

Well known Mormon and Senate Minority Leader Harry Reid recently made in excess of $1 million $700,00 in excess of $1 million off of a what seems to be a fairly shady real estate investment. Furthermore, Senator Reid violated Senate ethics requirements by failing to disclose his profits on the deal.

The Associated Press news article accuses Reid of doing business with the mob and using his influence to manipulate zoning ordinances. The article is long, but well worth reading. It says, in part:

  • The deal began in 1998 when Reid bought undeveloped residential property on Las Vegas’ booming outskirts for about $400,000. Reid bought one lot outright, and a second parcel jointly with Brown. One of the sellers was a developer who was benefiting from a government land swap that Reid supported. The seller never talked to Reid.
  • In 2001, Reid sold the land for the same price to a limited liability corporation created by Brown. The senator didn’t disclose the sale on his annual public ethics report or tell Congress he had any stake in Brown’s company. He continued to report to Congress that he personally owned the land.
  • After getting local officials to rezone the property for a shopping center, Brown’s company sold the land in 2004 to other developers and Reid took $1.1 million of the proceeds, nearly tripling the senator’s investment. Reid reported it to Congress as a personal land sale.
  • The complex dealings allowed Reid to transfer ownership, legal liability and some tax consequences to Brown’s company without public knowledge, but still collect a seven-figure payoff nearly three years later.
  • Reid hung up the phone when questioned about the deal during an AP interview last week.

    We’re supposed to be honest in all our dealings with our fellow man. We also believe in obeying, honoring, and sustaining the law.

    But what I’m dying to know is this: Did he pay tithing on it?