Phantom Gain

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.
References in periodicals archive ?
This type of gain is often referred to as "phantom gain" because even though it must be recognized and tax paid accordingly, the taxpayer has not realized any actual liquidity There is some speculation based on the early analysis of the Act that Congress may (and should) reconsider this 2026 mandatory gain recognition provision.
Remember that the taxpayer will have already recognized the 85% phantom gain on Dec.
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.
Sales of its super-luxury Rolls-Royce Phantom gained 15 per cent to 45 cars, bringing deliveries for the first seven months of the year to 330 units, a drop of 7.8 percent.
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).