Phantom Gain

A capital gain on which one owes taxes even if one takes a capital loss in the aggregate. The most common type of phantom gain occurs when a mutual fund sells some of its securities at a gain but its own shares decline in value. Because the fund's shareholders technically owned the securities that were sold for a gain, they must pay taxes on those gains even though they have actually lost money on their investment. A phantom gain should not be confused with a paper gain. See also: Phantom Income.

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Consequently, with their negative capital accounts increased to zero, the taxpayers recognized a phantom gain for that year.

Deductibility of limited partners' legal fees

2000-19, the Company will be required to report an additional phantom gain of approximately $111 million in its second-quarter financial statements.

Green continued, "We emphasize to investors that there is no economic substance behind either the $115 million first-quarter phantom gain or the $111 million phantom gain which we will report for the 2006 second quarter.

The Immune Response Corporation Announces It Must Restate First-Quarter 2006 Financial Statements to Add Phantom Income

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.

IRS follows AICPA position in guidance on proceeds received for homes and contents destroyed by disasters

Refund claims for phantom gains and the statute of limitations (SOL).

Tax consequences to investors of broker fraud and theft: there are a number of ways tax advisers can help clients who are victims of investment fraud or theft. This article discusses the tax issues faced when trying to recoup some of the loss

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).