Can Phantom Tax arise in real estate investments?
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Yes, Phantom Tax Meaning can arise in the investments in real estate especially in reit or in any kind of partnership structures. For instance, you can have a taxable income on the basis of charge in the value of property, although you have not sold it or even earned rental income on it. This means that despite being financially drained by the investment you may be presented with a tax bill that you can only meet through your money money investments. Real estate investors need to know this and prepare for this by setting aside some money to cater for this in future.