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.

Mentioned in ?

References in periodicals archive ?

Remember that the taxpayer will have already recognized the 85% phantom gain on Dec.

Opportunity Funds--The new tax bill's incentive to spur investments into certain community development projects

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.

The untold story of Crane v. Commissioner reveals an inconvenient tax truth: useless depreciation deductions cause global basis erosion to bait a hazardous tax trap for unwitting taxpayers

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

Deductibility of limited partners' legal fees

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

The backstage area where the Phantom gains access to his subterranean lake is represented by the curved outside of the cylinder.

A minor facelift for 'Phantom' road show

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).