I am a shareholder of a company registered in New York. Each year, I get a Schedule -1 1120S form stating the profit/loss of my share, for that year. For the profit years, I never received any actual cash nor stock distribution from the profit. All the profit were "supposedly" reinvested back to the company. Is it true that I am still obligated to file my "phanton income" in my personal tax return,even that I never received a single penny? If it's true, I really don't think it's fair. Is there anyway to prevent paying tax on these "phantom income"?
2007-05-14
09:53:50
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4 answers
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asked by
beefdotcom
1
in
United States