What are nondividend distributions of a
What are Nondividend stock distributions?
A nondividend distribution of a stock is a
distribution that is not paid out of the earnings and profits
of a corporation, like dividends are.
Should I receive a 1099 DIV
for nondividend distributions?
You should receive a Form 1099 DIV for
nondividend distributions or similar statement from the
corporation showing the nondividend distributions or a stock.
If you receive the 1099 DIV form for nondividend distributions,
the nondividend distribution amount will be shown in box 3 of
the 1099 DIV form.
What to do if I didn't receive the 1099 DIV
form for nondividend distributions?
If you did not receive the 1099 DIV form for
your nondividend distributions then report the distribution as
an ordinary dividend distribution instead of a nondividend
What are the tax consequences nondividend
Nondividend distributions reduce the basis
of the stock. Nondividend distributions are not taxed until
your basis in the stock is fully recovered. The non taxable
portion of the nondividend distribution is called a return of