|
Why is phantom income a problem?
|
| Why is phantom income a problem? |
|
Re: Why is phantom income a problem?
|
| Because you must pay taxes on it despite having no cash to cover the bill. Phantom income increases your taxable income on paper, even though no money hits your account. This can strain your budget if you’re not prepared https://harobuilder.com/what-is-phantom-tax/. It’s important to track investments that generate phantom income and incorporate them into your tax planning, so you can manage the liability without unexpected financial pressure. |