nontaxable distribution


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 Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
non-taxable gross dividends