Former President Donald Trump's civil business fraud trial took a significant turn on Tuesday as the focus shifted to the valuation of his Mar-a-Lago club in Palm Beach, Florida. The trial centers on allegations that Trump fraudulently inflated the value of the property.

Testifying in defense of Trump, a Florida real estate attorney argued that Mar-a-Lago could be sold as a home, despite previous legal documents where Trump stated his intention to use it solely as a club. This restriction plays a vital role in the claims made by New York state lawyers regarding the property's exaggerated value.

A luxury real estate broker from Palm Beach showcased a dazzling video of the historic estate, estimating its worth to be over $1 billion as of 2021. With its sprawling 17-acre waterfront location, Mar-a-Lago has served as Trump's residence and a famous venue for high-profile meetings during and after his presidency.

However, Mar-a-Lago has become a focal point in the ongoing New York civil case, much to Trump's frustration. New York State Attorney General Letitia James alleges that Trump and his company deceived lenders and others by inflating the value of key assets, including Mar-a-Lago, in financial statements.

Judge Arthur Engoron, in a pretrial ruling, found that Trump overstated Mar-a-Lago's value by up to 2,300% compared to the Palm Beach County tax appraiser's valuations, which ranged from $18 million to $28 million. Trump vehemently denies any wrongdoing, claiming that his financial statements were accompanied by disclaimers acknowledging potential inaccuracies.

The judge's assessment was based on Mar-a-Lago's annual net operating income as a club, rather than its resale value as a home or reconstruction cost. This method is the county's standard procedure for valuing social clubs and has tax benefits for Trump, reducing his property tax bill to $602,000 this year compared to an estimated $18 million if assessed at $1 billion.

Adding to the complexity, a 2002 agreement with the National Trust for Historic Preservation restricts any development other than club usage. Nonetheless, Trump's former corporate controller, Jeffrey McConney, valued Mar-a-Lago as a private home in the annual financial statements, reaching as high as $612 million in 2021.

The attorney general argues that these valuations disregarded the agreement with the National Trust and insists that Mar-a-Lago should be valued based on its club income, as determined by the county. However, Trump maintains that he retains the right to designate the property as a residence, citing a 1993 agreement with the town of Palm Beach.

Miami-based real estate attorney John Shubin testified that there is no prohibition on using Mar-a-Lago as a single-family residence, pointing out that it currently serves as both Trump's residence and a club. The agreement with the town stated that Mar-a-Lago would revert to private residential use if the club were to be "abandoned."

Trump's lawyers argue that the property's valuation in the financial statements was justified, as any prospective buyer would assume Trump's position. Palm Beach luxury real estate agents have indicated that Mar-a-Lago could potentially sell for $300 million to $600 million, and even reach $1 billion or more if a bidding war among wealthy contenders were to ensue.

As the civil fraud trial continues, the valuation of Mar-a-Lago remains a key point of contention. Both sides present conflicting interpretations of the property's intended use and its impact on its overall value, further fuelling the legal dispute surrounding Trump's business practices.