Sentences with phrase «phantom income»

If you have a sizable benefit at the time you purchase the shares but the stock price declines sharply afterward, you can end up paying tax on phantom income if you make a disqualifying disposition.

«Some people refer to that as phantom income because no cash is trading hands,» says Rob Dietz, a housing economist with the National Association of Home Builders.

Betterment basically invents phantom income from offsetting phantom tax gains that no sane person would have voluntarily realized.

Due to missed premium notices and the loans, the policy eventually reached a tipping point of being in danger of lapsing with phantom income within a year.

When the Hi - Tech Stock market BOOM went BUST in July 2000 thousands of honest, hard - working Canadian taxpayers were caught in this obscure tax trap and were levied taxes on paper profits that never actually materialized, i.e. phantom income..

This problem is addressed in the 2010 federal budget and changes are in the works but just exactly how the budget will treat the various types of victims of tax on phantom income wont be known until the budget is passed and becomes law.

The Mortgage Cancellation Relief Act of 2007, S. 1394, introduced by Sens. Debbie Stabenow, D - Mich., and George Voinovich, R - Ohio, among others, would direct the IRS not to count loan forgiveness under a workout as taxable phantom income.

This provides significant benefits to borrowers, he explains, by giving them both more loan proceeds and tax benefits by allowing them to defer phantom income.

And while Canadian dividends generate a dividend tax credit this is partly negated by the requirement to «gross up» the dividend income received: a tax on phantom income.

«Section 1031 prevents the taxation of phantom income.

This is known as phantom income.

If you had debt forgiven by a credit card issuer, mortgage or student loan lender, or other financial institution, it may create «phantom income» that's taxable.

TIPS have special tax consequences, generating phantom income on the «inflation compensation» component of the principal.

You will owe taxes on «income» you have not yet received (often called «phantom income»), and if your stock later loses value or the company fails, you will have paid taxes on income you never received.

When you pay tax on interest that you've earned but not collected, it is known as «phantom income.»

Thus, investors may be subject to tax on «phantom income,» with the gain in principal outweighing the coupons received.

Talk to your credit counselor about whether there's an exclusion or exception that may allow you to avoid the tax on this phantom income.

Investors will also be taxed on inflation adjustments to the principal in the year in which the adjustments occur, even though the principal adjustments would not actually be received from Treasury until maturity (a situation that is sometimes described as taxing «phantom income»).

These funds address the phantom income issue by paying out a monthly distribution that includes both the coupon income coming from the underlying TIPS held in the funds, as well as the principal adjustment for inflation.

TIPS can play a role in your portfolio but be careful of the phantom income issue created when buying bonds directly.

Overall, you have an out - of - pocket loss of $ 2,000 but you had to pay tax on $ 12,000 of phantom income ($ 15,000 of compensation income minus $ 3,000 of capital loss).

This creates what has been coined «phantom income», income that is taxed in the current period but not received until a later period.

What you report, is what you get taxed on, with the exception that firms that are heavily indebted to avoid paying taxes would get taxed on phantom income, the same as private equity.

Private equity would get taxed off of «phantom income» at a 15 % compounded rate, i.e., a private equity fund with $ 100 million in equity would have to pay taxes on $ 15 million of phantom income, at the fund if 15 % distributions are not made to shareholders.

Other items create timing differences, such as depreciation differences between the two tax systems, and the phantom income from exercising incentive stock options.

To zad886 There are two U.S. groups that co-operated with each other and lobbied the U.S.governemnt ro amend their defective «Alternative Minimum Tax» (AMT) legislation to stop taxing U.S. citizens on phantom income plus providing fair compensation retroactively to those that had already paid such taxes / penalties.

So far Canadians are not getting the same, or similar, tax treatment of taxes levied on their phantom income.

If you haven't run into the following booby - trap then be aware that equities acquired by way of an Emloyer's Shares Purchase Plan (ESPP) or Employee Share Option (ESO) plan can result in the employee being levied devatating taxes on phantom income.

Speaking of... the «Uses» section only contains one use rather than many and fails to properly caution the consumer about «phantom income» if the policy lapses while in a loan position.

This can be especially problematic, since there won't actually be any remaining cash value to pay the tax bill that comes from this «phantom income».

For example, if you and your spouse have a credit card that you both used during the marriage and after the card was settled you received a 1099 from the settling creditor, only you will be responsible for paying the taxes due on that phantom income.

Congress should look to reinstate tax relief for mortgage debt cancellation, so homeowners going through a short sale aren't taxed on the «phantom income» their forgiven debt represents.

Passage of mortgage cancellation tax relief, ensuring that households in a short sale, foreclosure, or workout won't pay tax on phantom income.

Mortgage Debt Forgiveness This provision will prevent homeowners who were forced to sell their home through a short - sale last year, or who faced a foreclosure, from being taxed on the «phantom income» they received when a lender cancelled their debt.

NAR supports an exclusion from taxation of the phantom income generated when all or a portion of a mortgage on a primary residence is forgiven.

It is unreasonable and unfair to require that they also pay tax on the phantom income associated with debt cancellation, especially because there will be no cash proceeds from the sale.

Without immediate action by Congress on mortgage debt cancellation relief, distressed homeowners will have to pay tax on «phantom income» from forgiven debt.

NAR supports an exclusion from taxation of the «phantom income» generated when all or a portion of a mortgage loan is forgiven.

Currently, a seller who goes through the short sale process, would be required to pay tax on the phantom income (the portion of mortgage debt that has been forgiven by the lender), even though no cash has changed hands.

The general tax rule that applies to debt forgiven treats the amount forgiven, sometimes referred to as phantom income, as taxable income to the borrower.