Taxpayers would generally not favor having phantom income
from a Ponzi scheme classified as a return of capital because the statute of limitation on refunds may have expired for the early years of the scheme and because the courts are divided on this issue.
Fortunately, precedent originating in Depression Era tax cases offers relief from taxation of this phantom income
In these two states, taxpayers should consider filing amended returns for the last three years, taking the position that the amounts reported as dividends and interest were either phantom income
or a return of capital and therefore not taxable.
is income reported as income by the fraudulent arrangement, but not income in reality because the monies labeled "income" were derived from other investors and not from a return on the investment.
The IRS has provided guidance that allows victims to go back five years to recoup taxes paid on phantom income
, but what about those who paid taxes for many years beyond five?
Besides eliminating the phantom income
tax for three years, the Senate's debt relief bill also extends the tax deductibility of private and FHA mortgage insurance premiums through 2010.
(Rick Violette) won a Belmont maiden race by more than ten lengths on her debut, while More Happy (Bob Baffert) was a maiden winner at Del Mar on her only previous outing.
The imputation of phantom income
and expense with respect to such CLAs would lead to absurd results in the case of taxpayers that enter into multiple CLAs in highly competitive industries.
The result is that properties with lesser economic value are at risk of deterioration as the investors have no incentive to invest funds in a property that has little or no cash flow and often generates phantom income
for the investors.
If these assets aren't shed, owners and their partners start earning phantom income
Many sponsors and boards of directors may get a moderate wake-up call when they realize their true cash position from operations, excluding phantom income
and other non-operating income sources.
6) Also, the current tax treatment of the phantom income
from inflation adjustment may serve to focus public attention on how current U.