That is far less than the millions of dollars in taxes those investors typically now owe on their transactions.

Despite a paper loss of $3 a share, the investor owes tax on the $1 distribution for each share owned.

In a Roth account, investors will not owe taxes at distribution, when the investments have appreciated over time.

The investor owed taxes on $906.50 in capital gains, representing the distribution of $9.065 a share.

A short forward contract means that the investor owes the counterparty the stock at time .

And that investor would owe less taxes later when the AT&T shares were sold.

The agreement, which was reached after eight months of negotiations, would provide $62 million in credits to lower the amounts that American investors would owe.

If the Congressional proposal becomes law and is made retroactive, the same investor would owe $442 less, or $1,067.

Even though no interest is actually paid, it is imputed, and investors owe taxes on this phantom income.

That could leave the investors owing taxes on sizable phantom income.