Remember that the taxpayer will have already recognized the 85% phantom gain
Ironically, Beulah could have, but did not, advance a similar constitutional argument with respect to the phantom gain triggered by the section 1016(a)(2) basis reduction by useless depreciation deductions.
Thus, had the Gain Basis been in effect during the Crane years, Beulah would have escaped the recognition of phantom gain upon the disposition of the Brooklyn Apartment Building without a second opportunity to transform depreciation deductions that did not produce tax benefits for her and the Crane estate in the tax year of sale.
Subsequently, when she was compelled to sell the Brooklyn Apartment Building for less than its original value in order to avoid foreclosure, the large amount of phantom gain triggered by the sale was attributable to the useless depreciation deductions that had reduced the basis of the building.
Consequently, with their negative capital accounts increased to zero, the taxpayers recognized a phantom gain
for that year.
Exempting the proceeds for contents while allowing the common pool of funds to be spent on the house and contents ensures that disaster victims are not taxed on phantom gain
, and that victims are not penalized for the choices they make as they rebuild and recover from the devastation.
The backstage area where the Phantom gains
access to his subterranean lake is represented by the curved outside of the cylinder.
Refund claims for phantom gains
and the statute of limitations (SOL).
Phantom gains tax has proved to be a major obstacle to lender takeovers of property.
This left no suitable means of protecting against phantom gains tax liability and led to our request for a ruling to validate a new approach for limiting the tax to the true economic gain realized in a transfer of property to a lender (usually, zero).