Nondividend Distributions

 

You can find your nontaxable distributions on Form 1099-DIV, Box 3. These are also called nondividend distributions. They’re uncommon. Since they represent a return of your cost, they aren’t taxable.

Subtract the amount of your nontaxable distribution from your basis. However, you might get back your complete cost. If so, report future distributions as capital gains.

To learn more, see Publication 550: Investment Income and Expenses at www.irs.gov.

 

Related Topics

Related Resources

Capital Gains And Rental Property Sales

Do you have to pay capital gains if you sell your rental property? Learn more from the tax experts at H&R Block.

Stock Splits

What are stock splits? Learn more about stock splits and their cost basis from the tax experts at H&R Block.

Nontaxable Combat Pay

Learn more about combat pay exclusions and get tax answers at H&R Block.

Reporting Child Care Income

Learn more about reporting child care income with help from the tax experts at H&R Block.