A dividend received by shareholders of a company as return on their investment, not derived from the profits of the company. If shareholders are paid a nontaxable distribution, shareholders shall reduce the basis in their stock by the amount of the distribution. When shares are sold, the amount of gain or loss recognized is calculated using the adjusted basis.
Related information about nontaxable distribution:
- Nontaxable Distribution Definition | Investopedia
A type of dividend that is paid to shareholders of a corporation not as a result of earnings, but as a return of capital. Nontaxable distributions can also include ...
- What is nontaxable distribution? definition and meaning
Definition of nontaxable distribution: A dividend received by shareholders of a ... If shareholders are paid a nontaxable distribution, shareholders shall reduce ...
- Are Distributions Taxable? - IRS Tax Map
Follow the instructions under Reporting your nontaxable distribution on Form 8606, ... To report your nontaxable distribution and to figure the remaining basis in ...
- Nontaxable Distributions – Tax Articles & Tax Tips – H&R Block®
Subtract the amount of your nontaxable distribution from your basis. ... Ex: A nontaxable distribution of $850 on a $10,000 investment reduces the cost to $9,150.
- Tax Treatment of the Common Stock Dividends | HCP
Nontaxable Distribution, $0.749248. Total Distributions Paid ... Nontaxable Distribution, $0.672844. Total Distributions ... Nontaxable Distribution, $0.000000 ...
- Additional Nontaxable Income - Minnesota Department of Revenue
with her own after-tax dollars, she must include the $2,000 nontaxable distribution on line 5. Elective Deferral or Deferred Compensation Plans. Contributions to ...
- Return of Capital
Return of capital is a nontaxable distribution from a fund not attributable to the ... Return of capital is a nontaxable distribution from a fund not attributable to the ...
- New Proposed Regulations Challenge Accelerated Charitable ...
Fourth as a nontaxable distribution of trust corpus. if a charitable remainder trust has no ordinary or capital gain income, and the distribution is out of principal ...