Loan forgiveness is another form of Phantom Income. The creditor essentially "pays" the delinquent borrower the amount of debt forgiven, which is why creditors send Form 1099-C to the borrow showing the amount of "income" that he or she received as forgiven debt. For obvious reasons, Phantom Income is something most taxpayers generally tend to eschew if at all possible. Unfortunately, Phantom Income is unavoidable in some cases.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
phantom income — A tax and accounting issue in limited partnerships where tax credits taken earlier in the life of the investment result in a reportable income when otherwise there would be a loss. Tax shelters prior to 1986 often resulted in phantom income … American business jargon
phantom income — Income from a limited partnership that creates taxability without generating cash flow. Bloomberg Financial Dictionary … Financial and business terms
phantom income — Fin income that is subject to tax even though the recipient never actually gets control of it, for example, income from a limited partnership … The ultimate business dictionary
Phantom Stock — is a method for companies to give their management or employees a bonus if the company performs well financially. Phantom stock provides a cash or stock bonus based on the value of a stated number of shares, to be paid out at the end of a… … Wikipedia
Phantom Manufacturing (Int'l.) Ltd. — Infobox Company name = Phantom Manufacturing (Int l.) Ltd. company type = Private foundation = Abbotsford, British Columbia (1992) location city = Abbotsford, British Columbia location country = Canada area served = North America key people = C.… … Wikipedia
Phantom Entertainment — Infobox Company company name = Phantom Entertainment company company type = Public (pinksheets|PHEI) foundation = 2002 location = Seattle, Washington key people = John Landino, CEO Tim Roberts, Chairman of the Board num employees = 3, as of July… … Wikipedia
Phantom Gain — A situation that arises when a gain on an investment is offset by a loss in the same investment, which usually comes from an income tax provision. Phantom gains are named as such because there is no actual return, although it may initially seem… … Investment dictionary
Star Wars Episode I: The Phantom Menace — This article is about the film. For the video game, see Star Wars Episode I: The Phantom Menace (video game). Star Wars I redirects here. For the first film in theatrical order, see Star Wars Episode IV: A New Hope. Star Wars Episode I: The… … Wikipedia
Kiss Meets the Phantom of the Park — Infobox Film name = Kiss Meets the Phantom of the Park caption = Cover to 1978 VHS release director = Gordon Hessler producer = Terry Morse, Jr. Joseph Barbera writer = Jan Michael Sherman Don Buday starring = Kiss Anthony Zerbe Deborah Ryan… … Wikipedia
S corporation — An S corporation or S corp, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.In general, S Corporations do not pay any income… … Wikipedia