What Does Phantom Gain Mean?
- 2 Answers
- 5865 Views
- CompuCom, Ernst Young, I also Faced
- E-Mail Answers
Answer Posted / jaishree
Phantom gains are capital gains on which you owe tax even if your actual return on the investment is negative.
For instance, if a mutual fund sells stock that has increased in price, you, as a fund shareholder, are liable for taxes on the portion of the gain the fund distributes to you.
The rule applies even if you bought shares of the fund after the stock price increased, and didn't benefit from the stock's rising value. You also owe the tax if you purchase shares in the fund after the stock has been sold but before the fund has made its distribution.
Phantom gains can also occur in a falling market, when a mutual fund may sell investments to raise cash to repurchase shares from shareholders who are leaving the fund.
If you're still an owner of the fund at the time any gains from those sales are distributed, you'll owe tax even though the value of your investment has decreased.
| Is This Answer Correct ? | 3 Yes | 0 No |
Post New Answer View All Answers
what is profitability ratio and dividend policy ratio
When we are doing the reconciliation process in cash management please tell me what are the different status will happen and when will it happen. Please help me out.
what are voucher entries for EPF treatment in tally
A Company has not deposited its ESI /PF dues from 01-04-10 till 31-12-10 in a year (Both the shares). What is the maximum time limit for that and is the liability as on date. Management wants to daly at the maximum, but want the calculations of each & every aspect- monthwise. The avrerage no. of employees are 50 and the salary is around 2.00 to 2.5 Lacs per month.
M/s ABC Brothers, which was registered in the year 2000, has been following Straight Line Method (SLM) of depreciation. In the current year it changed its method from Straight Line to Written Down Value (WDV) Method, since such change would result in the additional depreciation of Rs. 200 lakhs as a result of which the firm would qualify to be declared as a sick industrial unit. The auditor raised objection to this change in the method of depreciation. The objection of the auditor is justified because (a) Change in the method of depreciation should be done only with the consent of the auditor (b) Depreciation method can be changed only from WDV to SLM and not vice versa (c) Change in the method of deprecation should be done only if it is required by some statute and change would result in appropriate presentation of financial 6 statement (d) Method of depreciation cannot be changed under any circumstances
what is the meaning of 4X and 10X value in intraday market?
i had taken one year gap in completing my graduation bcom should it be considered as backlogs i dont have any kt or anything else i have passed all exam in one trial
Purchase Goods worth rs.1000/ icluding vat of rs 40/ & Service charge receive 1000/ including service charge rs 123.60/ What will be entry in Tally? Please Define me?
purchase plant and machinery
when the ABC's personal bank to to his business bank money transferred(paid) then how to pass the entry.
correction of sundry creotors
What is the difference between inactive accounts and dormant account?
Explain accounting 101?
Do you use social media to identify prospects?
how to prepare brs statement for company in tally
