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.
Learn more about receiving a short-term mutual funds loss, from the tax experts at H&R Block.
What is a capital gain distribution? Learn more about form 1099-Div Box 2A and get tax answers at H&R Block.
Learn more about Form 8690 and the IRS net investment income tax from the tax experts at H&R Block.
Have you ever thought about investing in a Cayman Islands tax haven? Before opening an account, or making adjustments to an already existing account, review these tax tips.